News
Making a show of property investment
19/01/07
Making money from property is a reality for many individuals in the Midlands who are becoming very savvy about increasing their personal wealth. It’s a fact borne out by The Property Investor Show, which is making its Birmingham debut at the NEC in March. The show is a magnet for people who want to make money from property, bringing together buyers, sellers and professional services that aim to make investing in property as profitable and through a series of seminars, as painless as possible. The show is a source of information and inspiration that thankfully doesn’t require anyone to expose their ambition and finances on television in order to get some good advice.
Visitors pre-register for the show, which enables organisers to gather some very interesting data about their investment intentions and expectations. A sample of 70 thousand registrants reveals that ninety per cent of investors or potential investors set out with the intention of acquiring a new build property, sometimes off plan for projects that may not be completed for months to come. Around a quarter of people would also consider investing in a commercial property as part of their portfolio. The commercial market, which can include office developments, retail outlets as well as manufacturing facilities has had traditionally had a slower, but more consistent capital growth over the years than residential, and can sometimes be combined with individuals own business to give a two fold benefit. There is an increasing trend for business owners to become their own landlord.
Seventy percent of homes in the UK are owner occupied, which means that around 18 million people have an investment in property, some probably without even considering it as an investment. The profile of homeowners is as diverse as you can imagine, but people who acquire property in addition to their main residence have a tendency to be in the AB socio-economic group and typically, according to show statistics have an income of around £57,000 per year, but significantly 40% of them are earning over £75,000.
Typically, people set themselves a twelve month timescale to launch into their first investment, although the majority who have taken the step of visiting a show are set to go straight away and even have liquid funds available for deposits or finance. First time investors have a tendency to make their initial investment purchase somewhere very local, in an area that they know well. As they gain confidence, perhaps with their second or third property, decisions begin to be less emotive and more scientific, researching and identifying areas and markets that are on the up. This can be of great benefit, for instance in one location, there may be a rental demand for smaller town or city centre apartments, in another, there could be most potential in medium sized suburban family homes. Buying the right property in the right place can make the difference between an average return and something phenomenal.
So how do Midland investors fare in comparison to those from other regions? In terms of profile and investment behaviour, there is very little regional variation, but we like to think that in terms of profit, Midlanders will be way out in front.
One thing is for certain, people who are serious about making property investment work for them, don’t just trust to luck or gut feeling; factors that can play too big a part in early investments, they know that maximum return on investment is generated by combining instinct with careful research and sound professional advice. After all, knowledge is power, and as ever, power means profit, so investors arming themselves with as much information as they can, will quickly develop the insight that builds successful property portfolios that can finance a lifestyle and last a lifetime.
The Property Investor Show is at the NEC Birmingham from 23-25th March, entry is free and online registration for the show and any of the 60 seminars is at www.propertyinvestor.co.uk/birmingham
For more information please contact Clive Reeves on 01543 501111 or email clive@wardlovett.com