Back to basics
Property investment: Back to basics
Over the previous 20 years, property prices in the UK have trebled. During the past decade alone, values have increased by an average of 35%, with many experts predicting prices will keep going up and up over the coming years.
This continuous growth makes property a very tempting investment for individuals and businesses that want to put their money in a safe place. Offering much better returns than most savings accounts, and less turbulent than stocks and shares, property provides an excellent opportunity for investors looking to make the most of their money.
Types of property investment
– Buying a home
If you have a pot of money you want to put into property, there are a number of different ways you can invest. One of the most common is to simply buy a property of your own. If you have a deposit, and can afford a mortgage, buying a home will allow you to enjoy the property while making money on your investment.
You can maximise your returns by purchasing a property that needs renovations and carrying out the work yourself. Buying in an up and coming area will also help you to beat the market.
– Investing in a development scheme
If you have a good amount of money in your savings, but can’t quite afford a property that’s big enough for you or in your dream location, property development could be the answer. The best way to start developing is to buy an affordable property in an upcoming area and renovate it to a high standard. For your first project, try to choose a property that only needs cosmetic work as structural fixes can quickly blow your budget.
Once the renovation is complete, you can either sell the property on or you can rent it out. Letting the property will allow you to benefit from a rental income while waiting for prices to rise. When average values in your area go up, you can sell your property and make an even bigger profit.
– Working with a partner
While property is generally a fairly safe investment, especially if you do your research and take precautions, it’s still not without its risks. You may find that your new property needs more work than you were expecting or the work may take longer than planned. Downturns in the property market can also cause sudden drops in property values.
A good way to protect yourself from the pitfalls of the property market is to work with an experienced partner. Investing alongside an expert partner like Agile will help to ensure your money is well looked after and you get great returns on your investment.
Over the past year, average house prices in Norwich have gone up by 5.4%.
With values in the rest of Norfolk also on the up, the region is an excellent place for property development. Learn more about our current investment opportunities by contacting us today.