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JUMPING ON THE BANDWAGON OR A WISE FINANCIAL DECISION? 20/02/07
- property developing from the foundations
It seems that today everyone knows someone who is investing into the property market, but is it a wise decision and are they getting the return expected from the risk involved? The Property Investor Show, which is due to host a show at the NEC in March, spoke to two property investors in the midlands to find out what are the highs and the lows of what appears to be viewed as a glamorous career.
Sarah Upton, along with her husband David, has been investing in property for three years, with a current portfolio of three properties. “For us the decision to enter into property investment was driven by wanting a long term investment other than more traditional ways, for example pensions”, commented Sarah. Long term investment in property will always show growth so it seemed like a much safer risk.”
It seems that one of the main factors to consider are whether you want to make money out of the rental or just want to cover your costs with the hope of a much larger income in the years to come. Sarah explained, “over the 3 years we have owned these properties it has cost us approximately £2,000 per year, but the properties over this period have increased by approximately £120,000.
This attitude is echoed by fellow developer Gary Lucas who has four properties in Tamworth and Birmingham. “I probably recoup a small amount from the rental but I’m more interested in the capital growth I can achieve. If I can have an annual growth of 8-9% I will be very happy.”
Certain requirements from the rental market are changing constantly, and both Sarah and Gary agree that a lot of your success as an investor is knowing your market and buying the right property at the right price. Advice is to talk to letting agents on a regular basis and find out where and what is renting – there’s no good buying a bargain if no one would consider living in that area!
David’s best advice to people new to the investing market is this, “you make your money when you buy a property and not when you sell it, if you buy it at the wrong price you will struggle to regain any reward on your investment.”
Knowledge, research and understanding your market play a big part in investment decisions, and the up-coming Property Investor Show aims to give people the knowledge and the contacts to inspire confidence for their future in bricks and mortar. The show brings together buyers and property specialists including developers, mortgage providers and financial and legal experts, who work with people right across the investment spectrum, whether they’re starting out or seasoned hands. The one common theme about the show is that everyone there is serious about making money from property.
Gary’s final comment? “What people must understand is that this is not an easy way to make some cash, it requires a lot of hard work and a huge commitment of time, it can be very successful and if you approach it with your eyes wide open and the right research it could just turn out to be very lucrative.”
As well as the expansive selection of UK and overseas exhibitors, The Property Investor Show also features a programme of seminars, at a cost of £5 per place, created to provide information and inspiration, making the route to property investment easier and more profitable for everyone. Entry to the show is free, but visitors need to pre-register online at www.propertyinvestor.co.uk/Birmingham/ where they will also find a seminar schedule for the 23rd to 25th March event.
ENDS
For more information please contact Clive Reeves on 01543 501111 or email clive@wardlovett.com