| One of the big dilemmas property investors face | | | | especially in the north in towns such as Leeds, |
| is deciding which properties to invest in and trying | | | | Liverpool, Manchester, Hull and Newcastle. And if |
| to find bargain property deals. With so much | | | | you look carefully, many of these properties will |
| competition out there this is not an easy task and | | | | require modernisation and refurbishment meaning |
| many investors choose to invest in off-plan | | | | that you can pick up some real bargains as low as |
| property investments because of the promises of | | | | £40,000 in some areas. |
| good discounts and guaranteed rental income | | | | These properties are common sense investments |
| schemes. However, I believe this strategy is | | | | for a number of reasons but firstly, they can be |
| often flawed and I'll explain why. | | | | easily let out to first time buyers or young |
| Many companies are offering new properties | | | | families who cannot afford to buy and they |
| off-plan with the promises of good discounts and | | | | achieve good rental yields as high as 8%, these |
| incentives if investors buy early. However, many | | | | properties have good future growth potential as |
| of the discounts offered are not genuine and | | | | their prices lag far below the national house price |
| many of the properties are over priced compared | | | | average meaning that they have good capital |
| to the rest of the market meaning that there is | | | | growth potential, there will be so many bargain |
| little chance of good future capital growth. | | | | properties out there at this price level that will be |
| I believe investors need to be looking at investing | | | | in need of modernisation meaning that if investors |
| in 2/3 bed terraced properties that are priced | | | | can buy cheaply, they will make some good |
| below the £100,000 price bracket in order | | | | instant profits. |
| to make good profits. Firstly, terraced properties | | | | So if investors are wondering what properties to |
| are generally the highest performing residential | | | | invest in next, I would suggest investing in |
| buy to let property and with the average | | | | terraced properties below the £100,000 |
| terraced property priced at only £110,000 | | | | threshold as the potential gains these properties |
| this poses many opportunities for property | | | | hold are significant. And my final piece of advice |
| investors. | | | | for investors is to stay away from over priced |
| If you search the internet, you can find many | | | | off-plan property investments unless they are |
| terraced properties priced below £100,000 | | | | priced sensibly and the discounts are genuine. |