Entering the property investment market

 

If you are thinking of entering the property investment market, it can be an exciting time. Anyone who is already a business professional will be used to making budgets, arranging funding, looking at business plans and making sure everything stays on track once it is up and running. This means that a business owner who wants to see a financial return from entering the property investment market will be more likely to make a success of things than someone who lacks experience or proven commercial skills.

State of the economy

As any entrepreneur or business owner knows, the state of the wider economy can have a significant impact on any moneymaking project. Timing can be crucial, as 'buy weak, sell strong' is a tried and trusted business method that really does apply to property. This means that choosing the right time to enter the market can be key to success.

The 2008 crash

The recent banking crisis was in many ways triggered by an over-inflated property market. Another major factor was the way lenders had given loans to people who simply weren't in a position to keep up the repayments. The fallout means that getting funding is now more difficult for many, but the upside is that some property markets, especially in other countries around Europe, are still in the recovery stages and offer good returns for a canny investor.



Brexit confusion

The more recent developments following the Brexit vote in the referendum are still in their early days and are playing out slowly. An initial drop in the value of the pound meant that property in the UK suddenly became far more attractive to overseas buyers, meaning that asking prices have held up. This is good news for sellers and those who are hanging on to property investments and hoping to avoid a price crash, but what about those looking to buy a home?

Is now a good time?

Taking all of these factors into account, the question has to be asked whether or not this is a good time to consider entering the property investment market. The answer is a resounding 'yes', and this comes down to two very basic and understandable reasons. The first is that the long-term outlook for the UK economy is still one of growth, although some projections have been downgraded in light of the Brexit vote. Even so, the levelling out of sterling on the international currencies markets means it is good for exports as well as inward investment. This means that the property market looks likely to continue to stay in good shape. For anyone looking for a long-term investment this is good news and for those in need of a vehicle that gives immediate returns, rental values are performing exceptionally well.

Interest rates

The other main factor that screams 'right now' at anyone thinking about when to make a property investment, is the fact that interest rates are sticking at their historic lows. Of course, the Bank of England actually recently cut them even more, meaning that it is cheaper than ever to borrow money and source funding. Not only that, fixed rates over longer terms are offering some of the best deals around, so budgeting over a period of years is easy and totally negates any risk of suffering an interest rate rise shock.

Business benefits

For a business owner, making an investment in the property market can have multifaceted advantages. As well as being a solid choice in terms of finding a profitable place to home surplus funds, property can often be used to advantage for the core business to facilitate expansion or cut back on existing outsourced rental overheads. It also offers opportunities to work with other individuals and businesses who are professionals in the field of property investment, such as Graham Harris London City Group Holdings, one of the bigger successful property investment firms operating in the UK.

Cost it out


Of course, if you are a business owner you already know about the importance of costing any project properly and taking into account every possible variable. As with virtually every other investment that actually has the chance to make money, the property market can also lose you money. Making sure that you have done all the right homework and research is imperative before you actually decide to make a move. However, if you take your time and apply your skill and experience to the investment, you'll be able to add another profitable arm to your business, and that could turn out to be the best choice you'll ever make.

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