Five top tips for wise property investment

by MPA25 Jun 2013

The best property investors will always maintain that they're playing a game of skill, not a game of chance. Whilst property price trends will always be completely out of their hands, there are plenty of steps that investors can take to improve their chances of making big profits on their portfolios.

Here are five tips to help investors ensure they choose a winning property.

#1 Look for emerging markets

Buying properties in emerging markets is one of the smartest things that investors can do in order to make big profits.

There may always be strong demand for prime retail space in London, Paris, New York and the like, but investors will nearly always have to stump up big bucks to get involved in these markets. It's a much smarter move putting your money where demand is low, but likely to get bigger, as this is a strong indicator that the value of your investment will rise.  

Unfortunately, without a crystal ball it can be difficult to predict which regions represent an emerging market. Veteran investors can spot an emerging market by analysing past property trends and keeping up with future activity. A lot of less experienced buyers choose to form an alliance with successful advisers in order to boost their chances of making intelligent investments.     

#2 Explore different types of property

It's not just the location of a property which affects pricing trends, it's the type of property as well. Intelligent investors will be willing to investigate bid for all sorts of properties, from residential homes to office space, retail space or warehouses if the price appears to be right.   

#3 Look for considerable yields 

Although a growth in the overall value of a property typically provides the best opportunity for big profits, wise investors will also take into account what sort of revenue they can yield from rental payments.

Rental yields provide most investors with a crucial monthly income that is needed to cover essential daily costs and grow their business so it's worth checking what sorts of rents are being paid at similar properties in the region. It's usually worth paying a bit more for a property where tenant demand is likely to be high.  

#4 Keep up with the news

Property prices are affected by current affairs more than a lot of people may realise.

The Brazilian property market has sky-rocketed ever since it was selected to host the upcoming World Cup and Olympic Games, as these events will present a wealth of business opportunities across the country. On the other side of the coin, the Spanish property market has completely collapsed ever since their economy went into free fall. These are two of the most obvious examples of why keeping up current affairs is key for property investors.  

#5 Put your fingers in plenty of pies

Unfortunately, some smaller-scale property collapses are unpredictable and therefore harder to avoid. For this reason, many investors recognise the value in having a diverse range of properties in their portfolio. This can protect them against the risk of huge losses.

Property investment is a complex beast, but these tips are good starting point for those who are trying to tame it.

Written by Qube Global (www.qubeglobal.co.uk). We are one of the world’s leading suppliers of property and facilities management software and have been providing solutions to its customers for over 35 years.

COMMENTS

  • by Chris | 9/10/2013 3:11:55 AM

    Turkey's property prices are growing at a rate of 10% YOY, http://kotaredevelopments.com/propertymarketlatest/

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