Selecting the right property for you property investment can either be a straightforward task, or it can be a laborious headache. This is because there are several different factors to consider when considering which investment to make.
For example, if you already have a 5 year plan, you know how much capital you intend to invest and you know your strategy for getting there, then your investment journey becomes a whole lot simpler. On the other hand if you are sat there with a pot of cash sat in the bank and you want to make it work harder for you, but you have no idea about property investing, you hear all of the negativity from the media and x, y and z, you know you want to make money from property but you don’t really know where to begin, that is where it is important to have a conversation with us to make a 5 – 10 year plan and have some structure behind your investment journey.
Now, I am not saying any of this to scare you, I am saying it to make you aware that understanding where you want to be financially in 5 years can significantly affect which sorts of investment you make today. For example, if you are, lets say, over 50 and you want to build a portfolio for your children and grandchildren, then building a simple, high yielding buy-to-let portfolio in South Wales would be absolutely ideal as, firstly, whatever happens in the market, the property prices will always eventually increase so your children and grandchildren are benefiting from the long term capital appreciation which has built up over time, and continuous monthly cash flow. On the other hand if you are looking to escape from your job, and even potentially go full time into property investing, you will want to invest into properties that create much higher cash flow for yourself in the shorter term, to be able to live off the rental income and have it support your lifestyle. With this second strategy you are still aiming to build your portfolio, but you will be looking at serviced accommodation and HMO investment properties which are known for being higher yielding and therefore cash flowing than a standard buy-t-o-let, however they are require more work to manage and maintain. Luckily we provide management for serviced accommodation here in South Wales so you do not have to worry about that!
So, with all of that in mind, taking a look at your personal circumstances, figuring out where you would like to be in 5-10 years and what you want to achieve from property and what you want it to do for you, will ultimately decide on how you select the right type of property investment for yourself and your family in the future.