Lent: Why not give up bad property investments?

With Pancake Day firmly behind us we can move forward in this period of fasting with a renewed sense of positivity as well as a rounder stomach as a result of all the lemon and sugar toppings. But while many people will be giving up chocolate, crisps and a whole array of sweet treats (our graphic designer is giving up pork in an odd twist), why not think about long-term profits and cash flow by giving up bad property investments.

Here at FreshStart Living we offer a range of below market value (BMV) properties and are committed to offering the best advice to current and prospective investors. So we have compiled a list of top tips to keep you out of hot water for the next 40 days and beyond.

1.       A good investment can turn into a bad investment when you don’t understand how it works.
When looking for property investment opportunities ensure that you fully understand what you are getting into. This could be anything from the structure of the actual deal to the amount of reservation fee required. The best way to avoid a bad investment is to do plenty of research and ask as many questions as you can. Feeling comfortable with a deal is one of the most important factors in investment.

 

2.       Don’t put all your money into one type of investment straight away.
It could be a bad decision to invest entire savings into one type of investment without testing the water first. It is better to start off small and experience what it is like to have money invested in one property before making the decision to better your investment returns by purchasing more builds. Once you have gained experience of the property investment market first-hand, then it is time to think about expanding to bigger and better deals.

 

3.       Check the condition of a property and plans for development before investing.
A good deal, comes with a great price and sound surroundings and structure, so anything that does not have solid evidence of good looks, proper development plans or shoddy workmanship should be avoided. If a property company has sound plans for a building and has prior evidence of their developments then this could be enough to persuade you to invest, but always make sure you’ve taken a good look yourself to put your mind at ease.

 

4.       Take advantage of tax breaks and low market prices.
If you have the money to spend but you want to get the best returns for as little cost as possible, you may benefit from taking advantage of low property market values as seen in the current economic climate. Investing in property when the time is right and the price is at a rate to suit your aims as well as your budget may be the best long-term solution with the highest rate of returns. Being savvy to market conditions is key here.

 

5.       Invest in a long­-standing product that has a reputation for success.
Fads such as the high value of gold and silver of recent years will eventually die out and could mean that investments that were once rich with returns and high in profits could become lacklustre.

 

6.       Take advantage of schemes that will help you in the transition between negotiating a deal and finalising an investment.
Many property investment companies offer initiatives and schemes to help investors along the way and it is always a good idea to consider these as a helping hand. Get to know what a company is offering as part of their initiatives and then decide whether it would be beneficial to your own investment plans. Rental guarantees and offers like buy five get one free could all be worth a look.