Investing in property can be a great move, if you’ll forgive the pun. The wealth of options you have can allow you to focus on a particular area in the property markets that interests you, whether it’s buy to let or indeed build to rent.
Like with any investment area though, there are different things you need to consider in order to help make sure you don’t put your finances in danger. So, read on to find out what some of the risks in property investment are and a few useful tips to help point you in the right direction with your portfolio.
What risks are involved?
It might be that you’ve inherited a property, that you can’t sell your home and are looking to rent it out, or that you just want to add to the number of homes under your belt – whatever the situation is, there’s always risks.
The nature of these risks can vary, but some examples can be:
• The area you’re looking to sell or buy is fluctuating in popularity
• The cost of living is going up or the value of houses is affected by external political factors
• There are other new developments in the area that could take interest away from your properties
• You feel you lack the experience to manage or become a landlord (which can be more time-consuming if you have a job already)
• The tenants in your buy to let or build to rent property are unreliable, or may be unable to pay
What to consider
A simple thing to do then to help counteract some of the above is to do your research. If you’re concerned about the future then look into what developments are in proposal for the foreseeable, but also how the popularity of the area has changed in recent years. Both of these should be a good indication of the situation.
Equally, if you have reservations about being a landlord then you can always put this into the hands of others. In a similar vein there are companies like Allsop who can provide assistance with your build to rent properties.
So, whether you’re just starting out or you are looking to strengthen and increase your property portfolio, make sure you take into account the aforementioned risks and considerations before you go forward. The bottom line is that you’ll want to get the best return possible, so you shouldn’t rush; if you still feel uncertain then you can also seek financial advice from an expert to put your mind at ease.