Rental property investment is a great opportunity to diversify your portfolio at the same time creating a passive income stream. Reports indicate that the number of rental households in the UK has increased by over nine million in the last decade, making it the largest ever increase over a decade since 1965. Since the figures are expected to retain, or shoot even higher following the high demand for rental housing in UK. 2017 may a good year to think about it whether real estate fits into your property investment strategy. Read on…
Rental property rates will continue their upward climb; it is estimated that, on average, rates for rental properties are bound to increase by up to 1.7% by August 2017.
Most of the UK cities are already witnessing a steady influx of new residents who are always in the hunt for somewhere to settle down.
Eventually, higher property rents will still produce stronger yields in certain cities.Rising prices in rental property may be a turn off for majority of renters; however, the opposite is also quite true for investors who may wish to buy rental properties in some cities in the UK. Recently, rent range identified the high end cities where rental rates saw the biggest jump in the duration leading to the third quarter of 2015 to the third quarter of 2016.
When rental prices increase by 16% every year, many investors may rush to think it as a major payday. On the contrary, it is also important to consider gross yield, after operating costs have been deducted.
So, in a nutshell, sometimes figures may be misleading- but when it comes to choosing a rental property to invest in, the most important factor to consider is location.
Part of the resurgence of some of the leading cities in the country can be attributed to millennial transplants who come in pursuit of job opportunities and affordable housing.
The mathematical function here is that as demand for rental homes shoots higher in these cities, it’s only obvious that rental prices will continue to climb correspondingly. But when operating costs remain low, the eventual result for property investors may lead to a larger payoff.
The Bottom Line is; real estate investment is never a walk in the park. Locating a suitable property and finding a perfect way to finance it could be a life saver. Another factor to consider is the pressure to find reliable tenants to keep the property occupied, so that your rental income remains consistent. In the end, there are also other day-to-day demands required of you as a landlord to keeping up with maintenance and repairs. Property cash buyers’ website is a wealth of resources where you can find handy guidelines to help you out in the process. Click on the link alongside to visit their website: https://www.propertycashbuyers.com/
Always be sure to calculate the risks and research the market keenly, so that you get to understand how much you stand to gain (or lose) from property investment this year.…
Let us also consider understanding the power of demographics for which it may affect economic standing of your property.
The more you knowledgeable you are about the most common mistakes that investors make, the better your likelihood of building lasting wealth on your treasured property.
Today let us discover why it’s not a good idea to only invest in your backyard.
It’s important to get out of your comfort zone when choosing an investment area. Let us remember that we should not put all our eggs in one basket.
In taking a leap of faith, we must also take and evaluate some risks.
Let's learn some more tips!
Over population or crowded area may also mean that businesses are more productive when they interact with larger numbers of customers, suppliers and competitors – and when they are forced to do so with more frequency.
Most people are employed in the service industry; and whilst a lot of these are becoming more knowledge-intensive, or at least involving greater use of technology, seven out of ten jobs still remain outside of our inner city area.
It’s true that a large number of knowledge-based workers believe that the benefits of living close to the city outweigh the higher cost of housing; less dwelling space and generally greater expenditure needed to be an inner city resident.
So, either more infill housing needs to be built across our middle and outer city suburbs; or we need better transport systems between home and major places of work; or more knowledge-based work needs to be moved to where people currently can afford to live.
Also, realizing the importance of location of your property investment when it comes to buying, it might be best to buy as close to one of the city’s economic “pulse points” as you (and your tenant profile) can afford.
Video Tips About Avoiding Property Investment Problems
Real estate agents are not just agents in the recent times. They have evolved into marketing professionals providing a broad range of services. It is advanced technology that has equipped the agents with some of the most useful tools needed for the real estate trade. Land agents or house agents were found serving the business of making arrangements for buying or selling land and houses respectively around 200 years ago. However, in the present times, the terms Broker and Estate Agent have evolved to include different services.
Typical Duties of a Realtor
The usual functions of an estate dealer include:
- Selling, buying and leasing the properties of their clients
- Coming up with property contracts
- Land agents not only need to deal with properties but they also need to know the locality they are serving very well. They also need to remain aware of the latest developments and the ones which are being expected. They must be knowledgeable about developments that can enhance the market value of different types of properties in the locality.
- Property dealers need to remain aware of new rental and sale costs of several types of comparable properties. They must also offer advice to their clients on the prices of various properties in an area.
- Showing the customers property sites
- Interviewing prospective clients
- Studying property lists
Exclusive Services Offered by the Realtors of the Modern Times
In the recent times, the job responsibility of a real estate agent has evolved into a marketing and sales discipline because of the growing competition in this field. It is only because of this reason that there are some added services offered by the realtors of the modern times. These services include:
- Marketing properties
- Preparing promotional information and sales brochures
- Managing the properties given out on rent
- Monitoring the progress of sales
- Negotiating sales
- Leading real estate team related to disciplines like real estate lawyers, mortgage brokers, contractors, inspectors and title companies.
- Managing websites and other related activities such as email, blogging and posting on social media.
- Using technology in their regular activities.
It is important for real estate agents to have excellent communication skills. A real estate broker’s ability of effectively communicating with clients involved in the purchase or sale of a property can help in breaking or making a property deal. There are different traits that you need to seek in the productive communication sector when looking for the right real estate agent. One of the most valuable skills that real estate brokers need to have for effective communication is listening skills. Communication involves the ongoing transformation of information and also the proper receipt of delivered information. Realtors should have the ability to ask different questions and then listening to the information that they get from their clients.
Why are Listening Skills Important?
Listening skills are important for realtors because effective listening can help them in guiding their clients into the right direction. They should have queries regarding the financial situation of the clientele and try getting correct answers for such questions. This will probably help them in knowing the needs of their customers for both selling and purchasing a property.
Getting the Client into Proper Communication
Effective communication for the real estate broker also means that he or she should be able to involve his or her client into the communication procedure. This is because even the most effective communicators might not be able to get the required help if their customers do not cooperate with them. Professional and experienced real estate brokers have the knowledge about how to get the required information from their clients. They always ask the key question on relevant topics that might be essential for the agent when it comes to carrying out his or her job responsibilities. Different issues that the real estate agent might ask include the amount that the client is willing to pay as down payment; whether the customer is a first time seller or buyer; questions about other requirements like school and neighbourhood and the deadline for selling or buying a property.
Effective Communication with Third Parties
Real estate agents should have the skills of effective communication in respect to the other parties involved. It is mandatory for a real estate agent to not only communicate with his or her client but also with the third parties participating in the transaction. This can surely help the brokers in closing deals in favour of their customers. Realtors should always pay attention to this part of their job responsibility.