Bank savings account still offering a measly 1% interest? Put your money into bricks and mortar.
There’s no one type of property investor. Some enjoy the daily hands-on of being a landlord; others prefer to remain in the background. Some enjoy the challenge of a fixer-upper; others don’t. But whatever type of investor you plan to be, property is still one of the wisest investments of all. Here’s why:
Better returns: Bank savings accounts have offered pitiful returns for years. Compare your savings rate to the typical yields from property investment.
Capital growth: Even taking into account the occasional bump, the long term trend for property prices is still upwards. So in addition to a rental income, your capital investment continues to grow.
Reliable, regular income: With tenants in place, they’ll give you a steady, reliable income, month after month.
Lower purchase prices: As a property investor, you’re an attractive proposition for sellers. You don’t come as part of a chain and you’re likely to have finance already arranged. That added security can be worth a lot to sellers, meaning you can expect to secure a better deal.
Finding the right investment
If you’re new to property investment in Bradford, it’s important from the outset to manage your investment as a business. Otherwise it’s easy to fall into the trap of treating your new purchase as if it’s your home.
Know your market: Search online for typical purchase and rental prices locally to understand what you should pay, and what you’ll be able to charge as rent.
Ready to let or a fixer upper? A property that’s ready to let can start earning faster, but you’ll need to make sure your income is more than a match for the costs. Properties that need work will be cheaper, but do your homework to ensure you can bring the property to a reasonable rental standard on budget.
Professional advice: How do you know what your property will be likely to fetch once you’ve renovated it? Ask us to value your Bradford property.
Factor in any additional costs: Make sure you take account of insurances, management fees, tax and legal fees – so you know from the outset what income you need to achieve to be in profit.
Property investment with Locate
As a landlord, you can be as hands on as you like. But if you’d rather focus on finding and renovating new properties, we’ll manage the existing ones for you. Talk to Locate about managing your property portfolio and, from finding tenants to securing deposits and maintaining your property throughout the tenancy, you can leave the day to day to us.