Tip 1 – Buying At The Right Time
The key thing to remember with the property market is that it is cyclical. The good times are always followed by the bad and vice versa. Both present opportunities to the investor, as long as they exercise a little patience. When it comes to buying, you want to wait until the market is at its lowest in terms of house and apartment prices. This allows you to pick up properties for far less than their market value in a good market, which means you can build on your portfolio and play the long game.
Tip 2 – Selling At The Right Time
On the other side of the coin is selling. In this case you want to try and wait for the market to reach its peak in terms of house prices before you sell off any of your portfolio. This will ensure that you get the highest possible return on the investments you made when the market wasn’t doing so well. You just need to have a little patience and not rush into the selling stage until you are sure the market is favourable to your goals.
Tip 3 – Buying The Right Properties
Having a well-stocked portfolio means nothing if the properties in them are not going to appeal to potential buyers. This means that you need to be very careful about what and where you buy at all times. Ideally, you want to pick up homes that appeal to first time buyers and families, as these are the two biggest purchasers of homes. As such, the location of the property, it’s suitability for multiple people and factors such as local schools and crime rates all need to be taken into account before you purchase the property.
Tip 4 – Consider Renting
If you are looking to invest over the long term, renting a property out is an excellent way to bring in cash. This allows for the property to generate a constant income stream that, over time, will pay back your investment. Best of all, you can purchase a property during a downturn, rent it out during the highest period of demand for rental properties, and then sell it on when the market recovers to squeeze the absolute most out of it.
Tip 5 – Keep An Eye Out For Property Developments
Generally speaking, if an area is undergoing development that is going to result in new properties being created, you should consider investing in that area as quickly as possible.
In many cases, once planning permissions have been granted there is a solid ripple effect before the properties have even been built. Get in early and you will see a good return on your investment once the project is finally completed.