Home>April Edition 2016, Investor guides>How do I choose the right property investment?

How do I choose the right property investment?

It’s important to invest in the right property. This guide should help you ask the right questions when considering which property to invest in.

Investing in property is a big deal. It’s important to research all of your options in order to make an informed decision. One of the decisions you will have to make is which specific property to invest in.

To help, we’ve devised a list of questions to ask yourself before choosing a property.

What will be the value of the property? Is this in line with other properties in the area?

When a property development is eventually sold, you will be entitled to a percentage of the profits. Naturally, the higher the price it is sold for, the more money you will make.

So it’s important to know how much the property is expected to be valued at. But you also need to be aware of other property prices in the area, and whether yours is over or under-valued in comparison.

If it’s considered to be over-priced, then you might find it difficult to sell. But a house or flat cheaper than others that are similar and nearby will likely have more potential buyers.

Are house prices expected to rise or fall in the area?

It’s difficult to know how the housing market will change throughout the duration of your investment. You might find that properties in an area you’ve invested in decline in value.

But on each property page, Cogress offers an ‘expected duration’ – usually somewhere between 18-24 months.

You can check on the Land Registry website to see how average prices in a particular area have changed month-by-month. Simply enter the area, the type of property (detached, semi-detached, flat etc.) and scroll down for the data.

How much return will I get on my investment?

Again, each Cogress project page will provide an expected figure on your annual return and your return for the duration of the project. This is absolutely not guaranteed. You could lose every penny of your investment. If you are unsure about investing, consult an independent financial advisor.

The numbers give you an idea of the return you could see. This will hopefully help you decide whether a property is worth the investment or not.

Will the property attract buy-to-let owners?

While Cogress investors are investing in a property that will later be sold, it’s a good idea to consider who the next owner will be.

It’s possible that they will be a landlord, looking to build their own portfolio. If this is the case, is the property an attractive prospect to landlords?

What are the rental prices like in the area? Is a landlord likely to make their money back in the long-run? Are there any other tenants living nearby, or does everyone own their own properties?

If your property is appealing to those looking to buy-to-let, then your pool of potential buyers expands.

These are the main questions to ask when considering if you want to invest in a property.

One thing you don’t have to worry about is the property developers, and the kind of reputation they might have. We thoroughly vet all of our developers (and investors too) to ensure everything is above board, individuals on all sides have peace of mind.

The Cogress platform is completely free – and by registering you are under no obligation to go any further than that. Feel free to speak to one of our experts for more details – you can phone on +44 (020) 7100 9744.

Always seek independent advice. This blog has not been approved as a financial promotion by Cogress Limited. We are not responsible for the content of external websites. Potential investors must rely on their own due diligence prior to investing.

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2017-09-25T12:24:39+00:00