Property As A Good Investment in 2019
One thing for sure is that property is always going to be needed, people need housing and business and industry need premises. But just because there is a demand for something doesn’t automatically mean it’s a good investment from a financial point of view. So let’s look at how this works and what makes a good investment in terms of buying property.
Are You Looking At Your First Property
If you are looking about buying your first property then it is common to just be obsessed with ‘getting on the property ladder’ and become a little blinded to whether or not you are making a good investment or not. In some ways you will always come out on top when buying a property you are going to live in as once the mortgage is paid off you will have a sizeable asset on your hands but you really want to be getting the most for your money. So do a little research as to what types of property and what areas are most likely to make a profit over the long term.
What About Buy To Let?
Once you are set up with your own home and are happy and settled you may want to increase the value you have in property ownership but don’t want to move. So why not buy a property with the idea of renting it out? One thing you really need to be aware of is that there are costs to renting out a property, things will require to be looked after and maintained or replaced such as the boiler or redecorating. You will also need to have landlord’s insurance rather than homeowners insurance.
How To Get The Best Mortgage Rates
It’s essential that you compare mortgages online no matter what type of property you are looking to buy. Be aware of the difference between fixed rate, where you pay the same repayment for the whole term of the mortgage and a variable rate where the repayment varies as interest rates vary (usually in line with the bank base rate) be aware of interest rates fluctuating and that things can go one way or another very quickly.
Is Renovating An Old Place Cost Effective
Sometimes you can find a bargain priced property that is in need of a complete renovation. This might seem like a great opportunity to get something at a lower price but you should be aware of the risks. You should be certain that you are aware of the true condition of the property and, if at all possible, get a professional survey conducted to be certain that you are not underestimating the amount of expense involved in the renovation.
Developing Your Own
One popular trend of recent years is building your own Reno property from scratch, purchasing the land, organising contractors and getting exactly what you want. This can be a great way of having a unique home and maybe even saving money. But as with renovating a property you need to have researched your costs and keep on top of project management to ensure that you don’t lose money.