Real Estate Investment: 4 Properties You’ll Never Struggle To Find A Tenant For

As attractive as the idea of property investment may be, many people find themselves put off by one huge concern: the ability to find tenants. Tenants, after all, are crucial to your ability to generate a profit from your property portfolio— but there’s no denying that landlords often  have huge problems relating to consistent tenant occupation rates.

Tenants are, to an extent, inherently transitory. This is one of the major benefits of only renting a home; it offers a flexibility that allows people to move from place-to-place with relative ease. As attractive as this ability may be to tenants, it can make prospective landlords rather edgy about the viability of property investment as a whole.

If you have contemplated real estate investment and then pulled back over concerns regarding finding tenants, then the properties below are well worth considering…

#1 – Student accommodation

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Student accommodation is always difficult to find. Simply put, there are more students than there are student-friendly properties. Thus, thanks to the eternal rules of supply and demand, choosing an investment property that can be rented to students is a surefire way of ensuring consistent occupation.

There are many decisions you will have to make if you investigate this kind of property. Are you going to let to a single student, who occupies a single apartment? Or are you going to let a single multi-room dwelling to a number of different students, who may or may not know one another? The second option is by far the most common, as few students have the funds available to live completely independently of one another.

If you let a property to a number of different students, then you will need to satisfy the rules and regulations involved in the process. You will be letting a property under a “house in multiple occupation” (commonly abbreviated to HMO) designation, which does require compliance with extra conditions. However, if you find a property close to a campus and contact HMO specialists to ensure you meet all the necessary requirements, you should be able to expect a high occupancy rate— which helps to protect both your initial investment and your profits.

#2 – Properties close to a beach

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As with student accommodation, this option is a different form to the standard “buy to let” that most prospective property investors imagine. However, again like student accommodation, buying properties close to a beach can be an incredibly savvy move.

First and foremost, you’ll be able to consider letting a beach-adjacent property in the conventional way; to one individual or family group, and renewing the tenancy on a monthly basis. Properties close to a beach will always be popular, but you are still going to be subject to the need to find consistent tenants. This, as discussed, can be difficult.

So buck the norm and opt for a different method of generating an income with your property investment. Rather than letting your property on a standard basis, offer your property for holiday rentals and AirBnB listings. These rentals might be short, but the close proximity to the beach should help ensure a continual stream of tenants, and those tenants will be easier to manage than conventional renters. Renting to holidaymakers gives you flexibility to reclaim and use the property whenever you want, allowing your investment a sense of freedom without all the red tape involved in managing a conventional tenant.

#3 – City centre apartments

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It doesn’t matter what city it is; city centre apartments will always be a great choice for rental properties. These properties are so in demand for one simple reason: everyone hates commuting.

If you find a property close to a business or financial district, there’s no doubt it will be an excellent investment. Dedicated workers in these areas will love the idea of a short commute combined with great access to the city’s nightlife, or you may find tenants who prefer to use the property as a pied-à-terre during the working week. Either way, a great city centre location is a reliable choice for any property investor.

While you may naturally be drawn to family homes in beautiful locations as a property investment, ultimately, you have to follow the people. City centres will always be bustling hubs, so you can expect a constant stream of city-centre workers wanting to rent from you. You’ll also be able to charge higher prices per square foot than you would on a family home. The one downside is that you will also pay more for the property itself, but you should be able to earn this investment back in consistent rental income.

#4 – A property with nearby transport connections

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It’s not just a nice neighbourhood or close proximity to a good shopping mall that you need to keep an eye out for when buying properties; transport connections matter too. Ideally, you want to find a property that offers at least two of the following:

  • Easy access to any railway or underground stations, preferably within less than 10 minutes walking time.
  • Easy access to bus stops.
  • Good road connections; less than 10 minutes drive away from a connection to a major highway.

Transport is often a key decision for tenants, especially those who are going to be commuting. You could have the nicest investment property in the world, but if it’s in the middle of nowhere and only serviced by a few buses a day, then tenants just aren’t going to want to live there. Tenants will accept smaller properties with excellent transport connections, so don’t think that the property itself is the only consideration you have to make. Your chosen property has to be as nice as possible, but its location — and particularly its proximity to transport links — is just as, if not more, important.

In conclusion

So if you have always wanted to try property investment but have worried about obtaining tenants, choosing one of the options above could be the perfect solution for you. While you will inevitably occasionally have gaps between tenants, the four property types above can help to ensure those gaps are relatively short.

 

Climbing The First-Time Buyer Property Ladder On The Right Foot

The number of first-time property buyers in U.K is set to hit a 10-year high in 2018. Property is one of the surest avenues to creating wealth. When we are young, thinking about making future investments is not always at the top of our priorities. For young adults who want to invest early, getting into property can help you achieve your dreams. If you are wondering how to get successful and make profits in home-buying, the tips below can prepare you for a bright future.

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Start Small and Start Now

At first, venturing into property can seem intimidating due to the talk of big money. However, you don’t need to have massive financial muscle to buy your first home. As a young person, all you need is to start saving that extra coin today. Be accountable, create a budget and educate yourself on how to manage what you have. When you finally save up enough and reach the minimum amount for a startup, it’s always best not to wait as there is no right time to start investing.

With whatever you have, you can first buy a single property and then increase gradually. It’s worth noting that when you start small, you gain valuable experience along the way, and you minimise risks if things get out of hand. When you invest today, your property will start appreciating and gift you with the money needed to expand your business.

Increase The Value of The Property

For your property to fetch a tidy sum and sell fast in the market, you need to be creative. Think of ways that you can increase its value. One of the proven steps to selling your home quickly and for top dollar is by improving its appeal. Create a good first impression by adding a fresh coat of paint, changing old fixtures, installing new lighting and keeping it clean at all times. Also, brighten up the outdoor area as the kerb appeal is what makes your property more inviting. Before making improvements, always do some research to determine what potential buyers will be looking for. With this, you will maximise returns and steer clear of making wrong financial decisions.

Surround Yourself With The Right Team

As a newcomer to the property world, you will frequently be faced with critical decisions. To make the correct choices, you need to surround yourself with people who can nurture you and feed you the right information. Step by step, build close relationships with qualified, certified, and trustworthy property inspectors, agents, contractors, mortgage brokers, and accountants. Due to their knowledge of market dynamics, professionals are well placed to offer guidance, give correct facts, protect your interests, and ensure you make correct decisions in future. With the right team, your investment is set to flourish.

Don’t Sell Too Quickly

Most young property investors tend to quickly sell their accommodation when they feel an opportunity has surfaced. After purchasing a home, resist the urge for quick money, and hold on to it a little bit longer. The longer you wait, the sweeter the deal. Always keep close tabs on the market trends as it will be easier to determine the right time to cash in. In the meantime, you can even make a decent income by renting the property out to a tenant.

For your young business to thrive, always conduct extensive research instead of relying on speculation. With this approach, you are assured of steady profits regardless of the money you invest. Do some background checks on the location, analyse the growth potential of the area, and consider your future needs. By being smart and staying informed, you are set to be a property genius regardless of how young you are.

What Can Make Buy-To-Let So Difficult?

If you are looking for a secure way to make some decent profit in the long run, then buy-to-let is often a good way to go. However, nothing is certain, and that applies to this as well as anything else. Although buy-to-let can be extremely lucrative when done right (and in good circumstances) it is also true that there are many things which can often make it a difficult process. They could be other financial concerns, problems with tenants, issues about being a landlord, or any other little niggles that could get in the way. In this post, we are going to take a look at some of the major things that can often make buy-to-let difficult to succeed in. Knowing these will help to prepare you and to help make the most of it, so it is worth a look.

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A Lack Of Professional Knowledge

The whole process of buying a property to rent out to make money is more complex than many people think. If there is one thing that tends to slip people up, it is not having all the necessary knowledge before they set out. If you want your buy-to-let mission to go as smoothly as possible, then you will definitely benefit from knowing everything that you possibly can before you even start looking into it. It might be that you need to carry out a lot of personal research in order to get the ball rolling here, but even that might not be enough. You might decide that getting the help of a professional is the way to go, and it very often is. Find yourself a real estate agent and take their advice on what you should do. They know the marketplace and the procedure better than you, and it is likely that they will be able to help you more than you might think.

A Crashing Market

All markets are volatile by their very nature. Any kind of investment you ever make is something of a gamble, even if some investments are more of a sure thing than others. The housing market is relatively safe in most places, but this doesn’t mean that it is a sure thing. There will always be crashes, as there are in every market in the world, and it is likely that you will need to try and navigate these water as well as you can. The best thing is to simply keep an eye on the marketplace, especially before you plan to make your move. The closer you are paying attention to it, the less likely it is that you will get your fingers burned, and the more likely you will make as much from it as you can.

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Poor Credit

If you have poor credit, you might find it difficult to see the whole process through to the end. Many people have poor credit, and it can come about easier than you might think. Fortunately, there are ways of dealing with this situation, and it is not as difficult to do as you might think. If you have particularly bad credit, you should try to find ways to improve it as much as possible. Such methods do exist, and although they are quite slow to come to fruition, it is worth doing. You can also use other means to get around the fact that you have poor credit. If you use a service like Improve Finance, you can borrow money against the home through a secured loan, even if you have bad credit. This means you will then have the necessary funds for any fix-ups that might need doing, or if you are planning to renovate before renting the property out. There is always a way to get what you want, and as long as you remember that you should find that you end up with the kind of financial situation you’re hoping for.

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No Target Tenant

If you want to make a success of this buy-to-let scheme, you will need to ensure that you can actually get your hands on a tenant. Without a tenant there is no profit, so this is essential. But a surprising amount of landlords do actually struggle to find tenants, or to keep hold of them for very long. The first thing you will need to think about is whether you are advertising your property in such a way for it to be attractive to potential tenants. In order to do that, you will find it helpful to think of a target tenant whom you can market towards. You can think of this example simply by taking the core demographics of the local area and thinking about what kind of person is likely to go for your property. Then you can renovate it according to their likely tastes, and this will make it much more likely that you find a tenant who wants to hang around for a decent amount of time. You should of course also ensure that you have tenancy agreements lasting at least twelve months, so that you can feel relatively secure for the following year at least. If you think of it in terms of basically having guaranteed rental income for a year, you will understand the value of doing so.

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Bad State Of Repair

One thing you absolutely must avoid is letting your property to fall into disrepair. If this happens, it can be much more difficult to get it back to a normal state, so it is better to just avoid it happening altogether. While it is on the market, make sure that you clean it regularly so that it doesn’t build up. You should also go around the property and ensure that there is nothing that needs fixing which hasn’t been fixed. If there is, that might be all it takes to stop it gaining interest from potential tenants, so you don’t want to take that risk. Keep the home in good repair, and you will be much more delighted at the results that you see.

Retire Early, Retire Right

You should always be thinking about your retirement. As crazy as it might sound, you really should be thinking about retirement in your early twenties. Not because you’ll be planning to stop working in the next few years but rather due to the fact that you’ll be there sooner than you think. So, you have to be prepared. You need to make sure that you have enough cash in your account to survive comfortably without the income that you might have been relying on. To do this, you need to consider ways that you can build up your capital, avoid debts that will eat your savings and live smart financially.

Recently, there was an advert for pension saving schemes. It showed two people’s lives in retirement on the saving plan they were currently on. One the one side someone was saving a lot and having a wonderful time after retirement. On the other, they were saving the bare minimum, and the projection for their retirement certainly wasn’t as rosy as they’d probably hoped. So perhaps this is the best place to start when thinking about your retirement.

How much are you saving? Ideally, you want to save around a quarter of your paycheck for your retirement. Unfortunately, for most people, this probably isn’t realistic. Particularly, when you take into account rent, bills, little luxuries and other expenses. You might hear people say that if you can’t afford to save your pension, you’re living past your means. But at what point are you sacrificing your enjoyment now to pay for a great future?

As such, you should really just be saving as much as you can reasonably afford. A few hundred each month isn’t an absurd level, and it’s one that most people should be able to meet. So, if you’re saving around that amount of money, you’ll have a nice pension pot to fall back on when you retire. If you’re struggling to save any money at all, a handy tip is to start thinking of it like another bill or even tax. It has to come out of your account at the end of the month. Of course, saving is a great start, but there is more that you can do to protect the outlook of your retirement and maybe even quit working earlier than most.

Buying Property

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Most people working now will be retired around 65-70 with the retirement age steadily increasing every year. You probably want to retire earlier than that and make sure you can still enjoy those last years in full. That’s why you want to buy property. There is an argument as to whether it’s financially wise to invest in property. And yes, it’s true to say that some people do end up in debt because they buy property and find that they can’t afford it. But that scenario is quite rare. The key thing to remember is that when you buy property, you leave yourself with capital that you can use and fall back on.

You might buy it with a loan but you can steadily pay that off, and if you’re doing this you can probably cut back a little on savings. Essentially, your home is your savings because you’ll be able to use the money you’ve put into it to move to a bigger home and pay the rest of the money on that one off. Then, when you retire, you can sell that and again, free the capital, moving to a smaller home and live comfortably through retirement. Yes, it sounds all too easy, doesn’t it? Well, it’s not, but it’s definitely possible if you commit to this type of plan. You just have to make sure you have some money in your accounts so that you don’t end up in debt when the home needs a repair or two.

Gaining A Second Income

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If you want to be well off when you retire or retire early, you better make sure that you have more than one income. In fact, it’s advisable that you have at least two incomes and ideally three. The good news is that one of these incomes can be completely passive and the other one you can complete in your spare time.

The nonpassive income would be what is essentially a side hustle. It’s something you can do outside of your main job, perhaps at the weekend to earn a little extra cash. The great thing about this is that if you already have a solid plan in place for your finances, that side hustle cash can be spent on things you want. But wait, isn’t that just wasting your money? Actually, no because you probably will be buying these products or services anyway. This way, they won’t affect your overall financial savings.

An example of a side hustle would be tutoring students. You might have experience as a teacher or perhaps an academic. If so, then you’ll be able to offer the support that parents are always looking for to push up their kid’s grades.

Or, you might want to consider working from home, making money online. Fortunate Investor has some great examples of ways to make money on the net. One example would certainly be working as a freelancer writer. With this job, you can provide content to websites and easily earn a lot of money in no time at all.

What about the passive income? Well, that could be any type of investment that doesn’t require a lot of your time. If you’re looking for a great example of this, you should think about flipping properties. To flip a property, you need to invest in a fixer-upper. Spend a few months renovating it on the weekends, using services from pros rather than elbow grease. Once you have done this, you can then sell it on and pocket the profit. Some people easily make double to original value of the home doing this, though it does depend on whether you buy the right property.

Avoid Frivolous Spends

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If you’re going to retire early and retire well, you need to understand the value of money. This means that you should avoid spending money in areas that won’t benefit you in the long run or that will probably turn out to not have been worth it. An example of this would be buying a new car.

According to financial experts, it’s never a smart idea to buy a car brand new because you’re pouring money down the drain by doing this. At best you’ll be wasting a few thousand that you could have saved if you bought the car second hand. At worst, you could be wasting a small fortune because you were desperate to own a dream car that will lose half it’s valued in a few years. There are exceptions to this. You might buy a classic, and if that’s the case, it could even be considered a solid investment. But this possibility is quite rare.

Of course, this is just one silly spend that you want to avoid when you’re working towards a solid retirement. Another would be tech. Tech depreciates almost as rapidly as cars. So, if you want the latest tech, it’s worth just waiting a couple years until it drops in price. Yes, you’ll always be a couple years behind the trends. But you’ll also be saving a lot more money compared with the typical consumer.

As you can see then, it is possible to retire earlier than most and to make sure you have a solid cushion of cash to fall back on. Goodluck!

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Buying A New Property? Not So Fast

There are a few things that you’ll need to consider before you head onto the property market in search of a new home for your family. If you don’t think about these issues now, you might run into problems further down the road. Let’s look at some of the problems that you might have to deal with.

Raising The Cash

Do you have enough money to buy the home you want? You can usually buy a home with roughly five percent of the asking value. But you should really aim for roughly twenty-five percent of the asking value to put down as a deposit. This will give you access to some of the best mortgage deals on the market. That will ultimately cut the cost of buying your home in the long term.

Paying The Repayments

Next, you need to think about the cost of the repayments. Don’t forget, these can end up being a lot more than what the house was worth. Particularly, if you have to deal with nasty levels of interest. That’s why you need to check your mortgage deal carefully before you buy. A lot of people run into financial issues because they didn’t understand how much they would owe for the home.

Checking The Home

You do need to perform an extensive check on the home before you even think about buying. There can be a lot of issues, particularly with a home that isn’t brand new. The following infographic has all the problem areas that you might need to watch out for.

 


Infographic Designed By SPI Property Inspections