No investment of any sort is totally risk-free and that is why there are a few things to consider before jumping into property investments and letting. When it comes to building a retirement nest egg for the future, property is still regarded as one of the safest long-term investments. Now Rooms Liverpool has been in the property management business for quite a while now and the knowledge and experience we have gained can help guide you through the world of investment properties.
First, you need to know your market. When purchasing a property for investment, do research on where the areas of the city are that have lower house prices and higher rents. This could be somewhere near a university or the city central. Depending on the type of tenant you’re looking for, the area and access to transit as well as a decent night life may be important.
Consider your investment goals. Traditional savings investments are not giving very strong returns. Property investment can achieve returns of around 13% (rental and capital growth) so is seen as an attractive alternative. If you want to invest but are concerned with potential problems managing your property, Now Rooms Liverpool offers an array of services that will allow you to reap benefits from your investment without having to wear several hats and deal with tenant issues. At the end of the day, your investment in a property can be liquidated – the risk is less as you own the property itself and can sell this at when you wish.
Choosing the right property is another very important key to success. If you are wanting to rent an HMO, do you want to purchase a property that already has several bedrooms and is set up as an HMO or do you want to purchase a property to convert? Both have their advantages and disadvantages and you’ll need to decide.
If you purchase an HMO that is already 100% occupied by tenants than you will be able to make money right from the start. This scenario, though, means that you haven’t vetted these tenants and you don’t know if they will be a problem or a great tenant. Perhaps you want to start with a clean slate and choose your tenants. Now Rooms Liverpool has a great system in place to find and vet tenants for you. That gives you one less thing you have to worry about.
Every property, large or small will need management, whether it is keeping on top of maintenance issues or ensuring the bins are being collected properly there are always things to do. If you live locally and have the time and skills, you may wish to manage the property yourself. However, for most investors this is the last thing they wish to be involved with. A professional property management company such as Now Rooms Liverpool will do all of this for you and will look after the sourcing of tenants as well as collecting income and sorting out maintenance issues.