If you’re looking to invest in property, having a clear idea of what you want to achieve is really really important.
Your budget, preferred location/locations, type of property, rental income and expected returns will all help you narrow down your search.
But something I think is equally important is understanding which of those things matter most to you.
Let’s say you’re looking for a buy-to-let property. You want a particular monthly return, a certain yield, a specific type of house and ideally something within a handful of postcodes.
There’s nothing wrong with knowing what you want. But what happens if you’ve been searching for months and nothing quite fits? This is where I think it’s worth looking at your criteria again.
For example, you might be concentrating on achieving the highest possible monthly cash flow. But what if there’s a property in an area with really strong tenant demand, good transport links, ongoing investment and promising prospects for capital growth? It might not produce quite the monthly income you originally had in mind, but could it still be a good long-term investment? For some investors, 100% yes!!
If you’re planning to hold a property for the next 15 or 20 years, buying in an area where people want to live and property values have the potential to increase, could be just as important as the income you’re receiving each month. Capital growth is never guaranteed, but it’s certainly something worth considering.
And let’s not forget tenant demand. A property in an area where people genuinely want to live, could give you a better chance of attracting tenants and reducing the time it sits empty.
There’s also the question of how quickly you want to build your portfolio. If your goal is to buy several properties over the next few years, it’s worth thinking about how much of your money each purchase will tie up. You might find a amazinggg property, but if it uses almost all your available capital, how long will it be before you’re in a position to buy again?
These are all things worth thinking about when deciding what matters most to you.
There’s also something else I’d encourage investors to do. Listen to what the market is telling you.
If you’re consistently viewing properties, putting forward offers and finding that sellers aren’t willing to accept the prices you need to make your numbers work, that’s useful information. It doesn’t necessarily mean you’re doing anything wrong, but perhaps there’s something worth reviewing.
Could you widen your search area? Consider a different property type? Revisit your expected returns? Or even explore another investment strategy?
Sometimes a relatively small adjustment can open up opportunities you might have overlooked.
At JH Property Connect, understanding what our investors want to achieve is a really important part of what we do. But so is keeping an eye on what’s happening in the market, speaking with agents and understanding where opportunities might exist.
Our clients are often time poor business owners and investors who don’t want to do all of that research themselves, so being able to explore different options together is really valuable.
My advice would be to have your criteria, know what you’re working towards and what you’re comfortable with and then focus on the two or three things that matter most to you, rather than trying to tick every possible box.
If you’ve been searching for a while without making progress, it’s ok to ask yourself, could changing just one thing help you move forward with your next investment property?
Email :jhpropertyconnect@gmail.com