When is defined as the right time to invest? The ‘right time’ is often just a delayed outlook which stalls investors from attaining their long-term financial goals.
‘Now is not the right time’ as a general statement is not necessarily true – there will always be a right time to invest, it’s about adapting with the market in terms of where and what you buy in order to reach the most profitable gains. A savvy investor knows the right time to invest is when they have their own time and resources to form a suitable strategy for all market conditions. So yes, timing does matter, but mostly to the individual.
A major factor driving momentum into the market is tenant demand in the rental market, further unbalancing the supply and demand of homes in the UK. For example, Rightmove reported that the number of people looking to rent increased by 33% in May 2020. This is compared to the same time the previous year. This factor combined with a continual need for suitable accommodation and a chronic undersupply of homes (which is not expected to change any time soon), positions property investment as a very appealing market.
While any investment will entail an element of risk, investing in residential property has proven to offer one of the most reliable long-term investments, providing stable returns and capital growth.
To attain a low-risk property investment that is lucrative in returns, the most important first step is research. Research on areas forecast to deliver the most profitable rental yields and capital appreciation will help mitigate risk. At Alesco, we forecast regions including Manchester, Birmingham and Liverpool to deliver the most lucrative returns, and with good reason. As part of the UK’s Northern Powerhouse initiative, these areas have seen instrumental growth through large scale regeneration and lucrative investment in recent years. They now sit as market leaders in the property investing landscape.
Another way to succeed in the market and manage any potential risk is to diversify your portfolio. Having a diverse income through a varied portfolio minimises risk of loss to your overall portfolio, exposes you to more opportunities for return and protects you against any adverse market cycles.
Historically, we were led to believe that only the wealthy can invest, and this misconception directly affects decision making for first-time investors. In fact, this notion of needing lots of money to get started is simply not the case. The key is to harness your income and equity and use that to build the right strategy to meet your long-term financial goal.
It’s important to align the cost of an investment with your current financial situation. For example, if you have a smaller budget, then starting with smaller investments, such as one-bed units, offer a great way to get a foot in the door. As income builds, you’ll have more fluidity to finance other investments such as multi-bed apartments or townhouses that offer more lucrative returns. This, coupled with the number of financing options, such as investment loans and buy-to-let mortgages, make investing a lot more accessible to a wider pool of investors.
Knowledge and experience power success in the property market, yet they don’t necessarily need to come from the investor. You may be known as a “property guru”; however, if that’s not the case, rest assured, there is an array of experienced professionals in the market hired exactly for the job.
At Alesco, we provide an end-to-end service, offering timely and reliable advice, tailored to each of our investor’s circumstances – including where to invest, a property within budget and the expected returns for that property. By seeking out professionals in the market and following these methods, it ensures investors are met with financial success from their investment and can seize opportunities they weren’t originally aware of.
By addressing these misconceptions in the property market, it’s clear some of the barriers to investing stem from popular disinformation. The main anchor of success in property investment is building a strategy around your personal financial goals which are grounded on expert-based knowledge and experience.
At Alesco, our ethos is built on investing in confidence. If you would like information on our latest opportunities available, contact our team today – 0203 819 7366.
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