Resolve to make 2018 your most successful yet in property investment
So, 2017 has ended. What a year it was. A UK general election that didn’t go quite as planned. Article 50 kicked off, and Brexit now appears to be on its way. In the Netherlands, it took months for a government to be formed. Germany’s political map is in chaos. Through it all, investors who bought property at the beginning of 2017 have made a profit that most experts told us was impossible.
As we look ahead to 2018, which we believe could be the year (again) to step into off-plan property in the UK, here are the New Year’s resolutions that savvy property investors will stick to.
1. Prepare for higher interest rates
After the Bank of England raised the base rate for the first time in years in November 2017, it looks like there could be more increases on the way in 2018. Read our article “What strategies do property investors use to beat rising interest rates?” and prepare for higher rates:
- Act to keep your costs under control (and even reduce them)
- Review your mortgage arrangements with a mortgage broker, and get the best deal possible
- Review rents and raise them if possible
2. Consider remortgaging to invest
With interest rates so low and demand for rental properties on the increase, adding to your portfolio now could be a very wise decision. Consider whether you could release equity from your current properties. Add a property or two in the best places to invest in property UK. Lock in a low-interest rate as you remortgage to grow your rental income.
3. Keep on top of maintenance and improve your properties
If you don’t plan to add to your portfolio in 2018, perhaps you should consider improving your current properties. You could add value to your properties by doing so. Tenants will love new additions and upgrades. Rental increases will be easier to make.
Review your property portfolio, and make a list of what needs to be (or could be) done to improve each property in your portfolio. Prepare a budget, and speak to your investment property manager to get an accurate forecast of the rental income that proposed improvements could produce.
The aim is to add value to the property and increase the rent to produce a higher return.
4. Ignore the doomsayers and be prepared to invest now
I’ve spoken to a lot of investors this year. Many of them have resisted investing their money. They’ve left cash in the bank earning next to zero. They missed average growth of around 5% in property prices in the UK. They missed out on gross rental yields of between 5% and 8%. Why? They listened to the overwhelming avalanche of doom merchants.
Ignore the doomsayers. The time to invest in property is always now. Don’t miss out on what promises to be another profitable year in property for savvy investors.
Get your mindset ready to invest. Prepare your finances for investment. And do it.
5. Find the best places to invest in property UK
Only considering investment property near to where you live could mean you miss out on the best property investment opportunities. The headline rates of growth and rental yield are only a national average. Locally, property markets move at very different paces. Prices and demand are driven by the property fundamentals: shops, schools, transport links, major employers and major investment.
Spread your search, and do your research to find the best places to invest – the locations that will produce returns today and in the future.
6. Review your cash flow forecasts
Examine your finances. Work through your cash flow forecasts. Are they as good as you believe? What impact will an interest rate rise have on your cash flow? Are there any underperforming properties that you should consider selling? Can you trim costs and increase income?
7. Review your rents
When was the last time you compared your rents to those charged by other landlords in your properties’ locations? Are you charging appropriately, or is it time you reviewed your rents upward? What features do other properties have that yours is lacking? Should you take action to upgrade your properties and make them more attractive to tenants, so they command a higher rent?
8. Get real about landlord insurance
Don’t neglect your landlord insurance. Compare your current arrangements with other providers. Make sure that your policy covers everything you need it to accidental damage, fire and flood, rental payments, etc.
9. Keep learning – every day
I’ve been in the business of property investment for more than 20 years. Through all that time, I’ve never stopped learning. Life is a continual process of education. I believe the better educated you are as an investor, the better your investment decisions will be.
Make the Gladfish Academy your number one stop on your daily journey through life and property investment. With thousands of articles and blogs, hundreds of books and videos, and access to the very best property investment research, webinars, and other educational materials, many consider it the number one resource for property investors in the UK. Little surprise that the Gladfish blog is ranked in the top ten of all real estate and property investment blogs in the world.
10. Enjoy your life in 2018
Property investment shouldn’t be stressful. It shouldn’t take up all your time. Employ a Set and Forget mentality in 2018:
- Find the best property in the best location
- Buy it
- Let professional investment property managers look after your property for you
- Enjoy family, friends, and the things you love to do
Have a great 2018, because, for savvy property investors like you, it is going to be a great year. Again.
Live with passion