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Real Estate Tips: What Is A Good Property To Invest In

Real estate has always been, and still remains, one of the top investments in the market. Whether you’re looking for an investment that can provide guaranteed returns or you’re just looking for something tangible, investing in a property will almost always be your best bet. However, the most common problem faced by anyone interested in investing in real estate is the number of options available. There are a lot of different kinds of properties that can be purchased which often leaves the investor very confused about how they should proceed. The good news is that this problem can be easily resolved with a little bit of research and homework.

In this article, we’re going to take a look at some of the factors that you should consider while investing in a property to ensure that you get the maximum returns with minimum risks. By the end of this article, you’ll understand the things that you should be looking out for and the things that must be avoided at all costs. Following these tips will ensure that your hard-earned money isn’t wasted.

So without further delay, let’s get to it and find out the features of a good property that you should be on the lookout for while investing.

1. Search Thoroughly

The most common mistake made by most investors is that they don’t search wide enough or deep enough when purchasing a property. What this means is that you should diversify the properties you’re looking into so that you can come across more opportunities that might interest you. It also means that you should research a lot about any property you’re interested in rather than just superficially taking a look at everything. This will minimise the scope for error and this will end up saving you a lot of money and hardships in the long run.

2. The Location

The location of your future investment is another aspect that should be looked at thoroughly because of the impact that it can have on the overall value. If you invest in a property that’s situated in a less developed area then you might be able to get an amazing deal, however, you have to make sure that the location will develop in the near future. This is important because the development will drive the prices up and that’ll make your investment a profitable one. Many people tend to ignore this aspect and just focus on the property itself, this limited view leads to trouble inevitably as the value of any property is highly dependent on its location.

3. Consider Your Needs

Perhaps the most important factor that should be considered before anything is your own needs. While this is one of the aspects that everyone already has in mind,  there are still some things to note for future reference. If you want to eventually live in the property or want to put it up for rent then you should think about a single family residence as it’s easily one of the most popular options in the market. However, if you want to utilise the property for commercial purposes, you’ll need a different property type, maybe something that incorporates a basement storage space or a fully furnished office.

4. Future Prospects

As we discussed before, the foresight of a good investor is what separates them from their rivals. If you can predict the future developments in your area then you’ll most likely be able to invest in a good property. However, this doesn’t just mean going over the possibilities in your head, it also means that you’ll have to do some research and ask around. This way, you can understand the amenities that are likely to pop up in the area and you’ll be able to understand the situation in a more holistic manner. This is a critical yet highly ignored aspect which can fetch you huge dividends in the long run.

These are some of the most important things you should definitely consider before investing in any property if you’re serious about staying profitable. Investing isn’t just about putting your money into something that might or might not be profitable. A good investor has to do their research and then arrive at a conclusion after research, analysis, and contemplation. There are many other factors that you should consider before investing but these are the ones that can’t be ignored at any cost if you’re serious about your money. If you follow these steps then you’re increasing your odds of making a good investment by a huge margin, and for a serious investor, even the tiniest detail matters a lot.

£14.7 billion raised in secondary offerings since the start of the year

Overall secondary offerings have reached £14.7 billion across 135 transactions in the UK for the year to date, according to new analysis from Deloitte. A secondary offering refers to the sale of shares in a listed company occurring after a company’s IPO, with the transaction taking place through either London’s Main Market or AIM.

Prior to the lockdown in the UK, the amount of money raised in January and February 2020 was almost twice that of the same period in 2019 (£3.4 billion vs £1.9 billion), signalling increased business optimism. Despite a drop in March, April and May both saw elevated levels of equity fundraising in London.

Chris Nicholls, Head of Equity and PLC Advisory at Deloitte, said: “The UK market has very much been open for existing listed companies seeking additional equity capital, including those from the retail and hospitality sectors. Typically this has been to strengthen balance sheets and improve liquidity in the wake of the pandemic. I would expect fundraising activity to continue into the rest of the year, albeit with only a modest trickle of IPOs.”

Since 23 March this year, the FTSE 100 and S&P 500 have risen 29.8% and 42.8% respectively, boosted by the gradual reopening of world economies and bold government and central bank stimulus measures. However, volatility levels remain elevated compared to long-term averages with the global VIX Index currently in the region of 24, substantially higher than the 2019 average of approximately 15.

Chris Nicholls concludes: “Whilst volatility has substantially reduced from March levels, any VIX reading above 20 traditionally represents a difficult environment in which to launch IPOs. However, global equity markets are recovering strongly from the unprecedented shock to the economy caused by COVID-19.”