Tafseer-Comparison

Menu
  • About Us
  • Contact Us
  • Privacy Policy
Menu

Maximising Property Investment Profit

Posted on April 12, 2020 by admin

One situation which has the potential to rapidly diminish profit is with an investment property which suffers from poor demand for rental or re-sale (at the desired value). In the instance of an investment property remaining untenanted, the investor would have to subsidise the mortgage payments, bills, etc. until a time where the property would be let and provide a rental income, or the property is sold. When investors experience a rental void period or insufficient demand for re-sale, the tendency is to drop the rental or sale price. This will further minimise profit and confidence in acquiring future investment properti.

 

How can property investment profit be maximised? By giving due consideration at the earliest stage possible, sufficient research can be undertaken to ensure that the local property market is driven by sufficient demand to minimise rental voids and to allow re-sale at a value which will return a profit.

 

Particularly on new-build properties, investors can negotiate a discount off the market value. This is more commonly the case with developers who want to achieve quick sales “off plan” at an early stage of construction, or where the developer has completed the build and wants to achieve quick sales on remaining properties.

 

There are also property investment companies offering investment properties with substantial discounts, due to their combined buying power. Investors can secure larger discounts via this avenue, compared to negotiating directly with developers.

 

Many investors will buy property at the current market value and rely on increasing property values over the mid to long term to generate a profit. Investors certainly have generated substantial profits by using this investment strategy, but these returns could have been far greater if the properties were purchased below market value in the first instance.

 

Astute investors are attracted to discounted property due to the substantial instant equity provided. A genuine 15% discount on a property valued at £200,000 would provide an instant gross profit of £30,000! Certainly a healthy profit to make from “Day 1”!

 

This article only briefly touches on some of the major factors when considering maximising property investment profit. By contacting local letting and estate agents, you can gain valuable feedback regarding the re-sale and rental prospects of your chosen property. For buy-to-let investors, letting agents will not just advise you on the achievable rental figures, but also if the demand for letting is for furnished or unfurnished properties, etc. Speak to as many property professionals as possible to get a wide range of feedback.

 

Property investment has and will continue to return substantial profits to successful investors. By ensuring that you have an investment plan before you proceed you can ensure that all reasonable steps are taken to succeed in your chosen investment property.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • Free Online Games for You
  • Digital Marketing Course Opening New Horizons of Success in Marketing
  • Various Types of Food Packing Machines
  • How to Read a Flooring Store’s Better Business Bureau Report
  • The Popularity of Flash Games Online To Play

Recent Comments

    Archives

    • January 2021
    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    • May 2020
    • April 2020
    • March 2020
    • February 2020
    • January 2020
    • December 2019
    • November 2019
    • October 2019
    • September 2019
    • August 2019

    Categories

    • My Blog

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org

    Sponser

    https://pokerbo.online/

    Overland Park Accident Law

    Houston Religious Discrimination Attorneys

    Escondido Construction Accident Attorneys

    Orlando Homeowners Association Attorneys

    Fort Myers False Crime Reporting

    Paterson Deportation Attorneys

    © 2021 Tafseer-Comparison | Powered by Minimalist Blog WordPress Theme