The current economic challenges have created many problems, and the property market has been affected.
A recent study by Michelmores, a law firm, saw 1,500 people share their thoughts on property investment, and risk.
Trending options like cryptocurrency aren’t of interest to most people, but property is in the top three options considered by those looking for a safe and sound investment plan.
Richard Cobb, senior partner at Michelmores, said: “The instability caused by Brexit, the pandemic, and the war in Ukraine – on top of a forecasted global recession – has led to investors being more risk averse in their financial decisions. Investors are becoming disillusioned with riskier asset classes such as cryptocurrency and are instead choosing traditional forms of investment, such as cash, bonds and property. While our data suggests that awareness of risk is heightened in each generation, more confident investors with a longer-term outlook may seize the opportunity to buy up assets while the value is low and potentially reap the rewards.”
We know what matters when investing in property
As property market specialists, here are five factors we believe are absolutely essential when it comes to making a smart decision when buying a home. Whether you are looking for a house for your loved ones, or a way to generate income, these factors are crucial to your success:
Location: This is the most important factor to consider when investing in property. The location of a property will determine the potential rental income and future resale value. Investors should consider the local amenities such as shops, schools, transport links and leisure facilities in the area. The desirability of the area will also have an impact on rental demand and resale value.
Rental yield: Rental yield is the return on investment that a property generates in the form of rental income. Investors should aim for a rental yield of at least 5% to ensure a profitable investment. They should consider the local rental market and demand for rental properties in the area.
Condition of the property: The condition of a property is important as it will affect the amount of work and money required to maintain it. Investors should consider the age of the property, the condition of the roof, walls, and foundation, as well as the state of the plumbing and electrical systems. They should also consider the potential for renovation and improvement.
Property type: Different types of properties offer different investment opportunities. Investors should consider the potential of the property, whether it is a residential or commercial property, and the type of tenant it will attract. For example, a student accommodation property will have a different investment potential than a single-family home.
Financial considerations: Finally, investors should consider the financial implications of the investment. They should evaluate the upfront costs, such as the purchase price, stamp duty, and legal fees, as well as the ongoing costs, such as mortgage payments, insurance, and maintenance expenses. They should also consider their financing options, including the amount of deposit they will need and the interest rates on any loans or mortgages they take out.
If you require any guidance in the local property market, our team is always on hand to assist you.
Contact Anthony Jones for all Wynyard property matters
If you are looking for help with any matter of the Wynyard property market, it is best to speak to property professionals. No one knows for sure what is going to happen next, so we won’t claim to have all the answers, but the Anthony Jones team is keen to help you as best we can. If you would like to contact us over housing matters, please call us today on 01325 776424.
