| One situation which has the potential to rapidly | | | | market value and rely on increasing property values |
| diminish profit is with an investment property which | | | | over the mid to long term to generate a profit. |
| suffers from poor demand for rental or re-sale (at | | | | Investors certainly have generated substantial profits |
| the desired value). In the instance of an investment | | | | by using this investment strategy, but these returns |
| property remaining untenanted, the investor would | | | | could have been far greater if the properties were |
| have to subsidise the mortgage payments, bills, etc. | | | | purchased below market value in the first instance. |
| until a time where the property would be let and | | | | Astute investors are attracted to discounted |
| provide a rental income, or the property is sold. | | | | property due to the substantial instant equity |
| When investors experience a rental void period or | | | | provided. A genuine 15% discount on a property |
| insufficient demand for re-sale, the tendency is to | | | | valued at £200,000 would provide an instant |
| drop the rental or sale price. This will further minimise | | | | gross profit of £30,000! Certainly a healthy |
| profit and confidence in acquiring future investment | | | | profit to make from “Day 1”! |
| properties. | | | | This article only briefly touches on some of the |
| How can property investment profit be maximised? | | | | major factors when considering maximising property |
| By giving due consideration at the earliest stage | | | | investment profit. By contacting local letting and |
| possible, sufficient research can be undertaken to | | | | estate agents, you can gain valuable feedback |
| ensure that the local property market is driven by | | | | regarding the re-sale and rental prospects of your |
| sufficient demand to minimise rental voids and to | | | | chosen property. For buy-to-let investors, letting |
| allow re-sale at a value which will return a profit. | | | | agents will not just advise you on the achievable |
| Particularly on new-build properties, investors can | | | | rental figures, but also if the demand for letting is for |
| negotiate a discount off the market value. This is | | | | furnished or unfurnished properties, etc. Speak to as |
| more commonly the case with developers who want | | | | many property professionals as possible to get a |
| to achieve quick sales “off plan” at an | | | | wide range of feedback. |
| early stage of construction, or where the developer | | | | Property investment has and will continue to return |
| has completed the build and wants to achieve quick | | | | substantial profits to successful investors. By ensuring |
| sales on remaining properties. | | | | that you have an investment plan before you |
| There are also property investment companies | | | | proceed, you can ensure that all reasonable steps are |
| offering investment properties with substantial | | | | taken to succeed in your chosen investment |
| discounts, due to their combined buying power. | | | | property. |
| Investors can secure larger discounts via this avenue, | | | | Good luck with your current and future investment |
| compared to negotiating directly with developers. | | | | acquisitions! |
| Many investors will buy property at the current | | | | |