Invest At The Bottom End of The

Market To Achieve Good Gains

One of the big dilemmas property investors face is deciding which properties to invest in and trying to find bargain property investment deals. With so much competition out there this is not an easy task and many property investors choose to invest in off-plan property investments because of the promises of good discounts and guaranteed rental income schemes. However, I believe this strategy is often flawed and I’ll explain why…

Many companies are offering new properties off-plan with the promises of good discounts and incentives if investors buy early. However, many of the discounts offered are not genuine and many of the properties are over priced compared to the rest of the market meaning that there is little chance of good future capital growth.

I believe investors need to be looking at investing in 2/3 bed terraced properties that are priced below the £100,000 price bracket in order to make good profits. Firstly, terraced properties are generally the highest performing residential buy to let property and with the average terraced property priced at only £110,000 this poses many opportunities for property investors.

If you search the internet, you can find many terraced properties priced below £100,000 especially in the north in towns such as Leeds, Liverpool, Manchester, Hull and Newcastle. And if you look carefully, many of these properties will require modernisation and refurbishment meaning that you can pick up some real bargains as low as £40,000 in some areas.

These properties are common sense investments for a number of reasons but firstly, they can be easily let out to first time buyers or young families who cannot afford to buy and they achieve good rental yields as high as 8%, these properties have good future growth potential as their prices lag far below the national house price average meaning that they have good capital growth potential, there will be so many bargain properties out there at this price level that will be in need of modernisation meaning that if investors can buy cheaply, they will make some good instant profits.

So if investors are wondering what properties to invest in next, I would suggest investing in terraced properties below the £100,000 threshold as the potential gains these properties hold are significant. And my final piece of advice for investors is to stay away from over priced off-plan property investments unless they are priced sensibly and the discounts are genuine.