Tuesday, September 26, 2017

Property investment hacks designed to maximise your income potential

The lower value of the pound, growing demand in the UK for rental homes and a changing rental sector are all reasons why a wave of new investors from Russia, the Middle East, the EU and South Africa are now starting to spend big on British off-plan rented properties. However, for the many new investors thinking about joining them, it can be a daunting prospect filled with the potential for risks and loss. 

It doesn't need to be this way, however. While nerves are understandable for newcomers to the investment market, there are ways to mitigate against risks and give yourself the best chance of success. Here, UK property specialist ExperienceInvest reviews some investment hacks that are designed to lower risk and maximise your income. 

Hit the right markets 

The number one rule of property investment is to make sure you are hitting the right markets. As a new investor, this can be a tricky thing to get right without experience, but there are essentially two things you are looking to combine; business growth and demand. Think of it this way; if there are businesses investing big in a city and more start-ups, and this is fuelling demand from skilled people moving into the area, there will be a need for growing numbers of rental properties. When this is the case, investors can maximise their income and lower the risk of void periods. 

Diversify your portfolio 

Variety is the spice of life, and nowhere is this truer than in the world of property investment. For newcomers who want a safer investment, diverse portfolios are probably the safest way to put money into the market. When you, for example, put money into both residential and student accommodationinvestment, you allow yourself to make the most of growth in both markets, while also protecting your portfolio as a whole if one of your asset classes starts going into sudden decline. By hedging your bets, you give yourself a much better chance of a solid income. 

Make it passive 

Without a doubt, one of the hardest things for a new investor in the property market to do is to manage their properties, deal with tenants and attempt to keep track of all incoming and outgoing funds. With this in mind, why not make your investment far more passive than active? Investing with a company like Experience Invest allows you the chance to have a much less involved role in the success of your portfolio, which lowers the stress and gives you peace of mind that your investment is being looked after. All you do is put your money in and wait for your income to start.

Secure your returns 

Another benefit of investing with a company like Experience Invest is that it allows you to further lower your level of risk in the initial stages of being an investor. Many newcomers to the market will be concerned about how a new development will perform in its first few months and years. But working with Experience Invest can take that worry and risk away by allowing you to spend off plan and secure a set, assured return over a specified period, so you don't have to worry about your returns.