You can increase your chances of success in property investment by establishing clear goals that will guide your decision making and allow you to measure results.
There are many factors to take into account when planning a property investment, from the amount of capital you’re willing to commit upfront, to the location and asset class you want to invest in.
One of the most important considerations of all is exactly what you want to achieve from the venture. Setting clear goals is vital because it gives your investment valuable structure and focus, which helps to guide your decisions and makes it easier to gauge eventual outcomes.
Informing your decisions
It becomes much easier to make vital investment decisions when you have a well-defined idea of the ultimate targets you’re aiming for.
Where location is concerned, for example, it’s difficult to know where you should invest without first establishing what you want to gain from the investment. If your top priority is securing a regular, reliable second income, your focus will be on locations that offer a high likelihood of steady rental returns, such as student towns or London commuter hotspots where demand for private rental property is consistently high.
If you’re more interested in long-term capital returns, you might want to focus on well-established destinations with a strong track record for sustainability and price growth.
The same principle applies to your choice of asset class. Student accommodation has demonstrated its worth in recent years and is now viewed as a good option for income investment thanks to higher-than-average rental yields, while residential buy-to-let property could be preferable for those prioritising capital growth.
To get a clear picture of the success of your investment, you need to know if the returns you’re receiving are up to the standard you were hoping for when you embarked on the venture. Without clear goals in place from the start, it’s more difficult to draw informed conclusions about whether the investment can be considered a success.
Specific, realistic objectives give you a benchmark against which to measure your results and returns, which puts you in a stronger position to decide if you need to adjust your investment strategy.
Greater accuracy in evaluating your returns can also help you decide when is the best time to exit a property investment. This is something many investors could benefit from thinking about, with a survey by Experience Invest last year showing that a quarter (25%) of investors were locked into investments they were unable to liquidate.
One of the advantages of the property sector is that it’s relatively easy to offload assets on the open market, particularly with the help of a dedicated service like yieldbase.
To find out more about property investment and maximising your chances of success, book a free one-to-one consultation with Experience Invest or give us a call on +44 (0)207 834 1113.