While property investment can be a risky endeavor, long-term buy to let properties represent a potentially safe and strong investment opportunity, if chosen with consideration. We have collected some of the factors to consider before choosing a buy to let investment.
- Analyze The Current Market
Before making a random investment, your first step should be to research the market well. Research the area, and learn the basics of buy to let investments, consider if buy to let investments will fulfill your financial goal requirements, and if they are the best way to invest your money.
- Be Intelligent When Selecting Location
As with any investment, your success will greatly depend on your chosen location. You will first have to research the economic, demographic and social situation of the area. Also think about the future of the location. Improving economy, new developments, business investments planned for the future are all positive signs, as they will mean future property appreciation, and a stable property investment. Economic growth also means growing employment levels, and thus a good rental market. You should also consider the stability of the real estate market and the growth potential of rental yields.
Thailand has recently been the focus of several big companies and private investors such as the OISHI Group and Trident Energy for project possibilities in 2017. The Thai Cabinet also just approved a 25 billion baht infrastructure plan for next year (Article Here)
- Who Are My Potential Tenants?
The single most important factor when investing in a buy to let property is to think about your target tenants’ needs. After all, you are not buying the property for you to live in, so try to put yourself in the shoes of the target tenant. Is the property close to local amenities, schools, public transport, central areas and hospitals? Consider the area in general: the overall atmosphere, if it is a developing area, and research the economic situation of the people living there
- Research Best Return Options
You can realistically expect a 12-15% net yield from your buy to let property investment, but only if you choose wisely. The economic recession has resulted in a large number of foreclosures, for example in the US property market. Property prices in other countries around the globe have been driving investors to look to less expensive property ventures in countries abroad. Thailand is already seeing a surge of Chinese property investors, especially in and around Pattaya (Article Here)
- Weigh The Risks
Before making a property investment, you should always consider the possible pitfalls. Would you be able to continue your investment, if prices were to fall drastically? You can minimize the amount of risk to you, the investor, by choosing a good investment advice company. If you are interested in multiple options available to you, contact Emerging Trend’s Advisors today, they are among the most reputable in the business and offer an array of Recommended Investment Options.
- Think about the future of your investment
When investing in a buy to let property, you should always consider the future of your investment. Can you expect economic growth in your chosen area? How could the rental market be in 10 years’ time? Of course, most of these things are impossible to predict, but you should research your options as thoroughly as possible. You could also consider the future resale potential of the property, which could be a viable and successful exit strategy once property prices have increased. With guaranteed return investment opportunities through Emerging Trends Advisors, your investment is safe for between 5 and 20 years. Guarantees are a minimum of 10%, not bad considering you are collecting 0.06% on average for your “Savings Account Investment.”