Weekly Recap - 26/05/23
An investment portfolio is a perfect way to generate passive income, building wealth over time. Though, researching and having a solid plan before making a start is highly important. It is always best to start small with one or two properties and gradually build a portfolio rather than grow it overnight. Property investment is, after all, a long-term strategy that cannot be rushed. Setting goals is advised before making a strategic plan.
Investors should first consider:
By setting these goals, investors can achieve a thorough strategy that will only flourish. From using interest-only mortgages to maximise monthly incomings to re-mortgaging the property before purchasing the next - investors can create a domino chain of profit to help build their portfolio.
Find out more tips on how to build a successful investment portfolio.
Investors can learn the expected annual returns from their property by calculating its rental yield. This is found by dividing the property value by the annual rental income, then multiplying the amount by 100 to create the percentage. (Or you can just use a property yield calculator!)
A good rental yield can be anything above 5%, with the average yield for the UK being 3.74%. However, fantastic returns on property investments can be found in the North West, with Liverpool, Manchester, and Leeds seeing forecast yields of up to 6.5% this year.
When it comes to property types that offer the best and most consistent rental yields, off-plan properties often take the top spot.
From off-plan developments, investors can often expect:
It is always best to research or gain some insight. Find out more about rental yields and what to expect from off-plan investments.
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Buying off-plan may first appear as a minefield, but not if investors are prepared. As covered in our second article above, off-plan developments can offer the most consistent high yields and many other benefits, from immediate equity to higher rents.
However, the thought of investing money in a property without knowing what it will look like can be off-putting. Doing so while relying on the developer to complete the project, too, can make it all the more daunting.
That is where Your Guide to Investing Off-Plan comes in. We guide you through the process, including the risks and how to navigate them, and how you and your portfolio can massively benefit.
Download now for an off-plan breakdown.