5 Key Factors to Consider When Investing in Property

December 16, 2020
property investments
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Investing in property is a big decision for some people, and many people are still going in blind without good advice. If you are thinking about investing in property, I have put together a list of 5 factors you should consider before investing.

Investing in property is a big decision for some people, and many people are still going in blind without good advice. If you are thinking about investing in property, I have put together a list of 5 factors you should consider before investing.

5 Factors You Should Consider Before Investing.

If you get all five keys in one region or country, you can almost guarantee that you will make money from investing in property.

Countrywide growth

You may have noticed certain countries are experiencing an economic boom just now, which can be due to many factors. As soon as you know that a country has plans to develop internally and externally, then it’s time to take a closer look. Two great examples of this are India and Brazil. There is a huge demand for IT knowledge in India, and thousands of companies have outsourced their call center facilities to this country, which means a huge amount of cash coming in and more people spending money. This all adds up to an economic boom in India. Similarly with Brazil, the government is on a mission to get investment into the country, and it is undoubtedly working in its favor. With its export operations increasing, Brazil is a legit example of a country on the up.

Infra-structure

Look at the area you are thinking about investing in and find out if there are new changes taking place in that region or country. A great example is London. Look at what is happening in and around the city to host the Olympic games; there are massive railway network changes, bus links (iBus), more cycling lanes, and even the water network upgraded. All these things should be taken into consideration when deciding to invest in a particular region or country. Is London still a good property investment area? Of course, it is, even with the already high prices, it’s all supply and demand.

Employment

Look at the businesses in and around the region and determine if there are any plans for major new businesses to open in the area. A good example of this would be Donald Trump in Aberdeen in the UK. Although he was fighting to get the £1 billion project off the ground, he employed 400 people. There will also be a knock-on effect if the plans are successful as more businesses will come to the region. ‘If it’s going to make money for Donald, I could make money.’

Clean up

you might have noticed a cash injection in a particularly bad area of a city to clean it up. This cash injection can go a long way to cleaning up the image of a region. An excellent example of this would be an area called Govan in Scotland. With a bridge crossing the Clyde River into Govan and the area, in general, being regenerated, house prices have risen sharply.

European Union

Over the last few years, there have been many changes in the way people invest in property. One of these changes is investing in other countries. With a large amount of property investment companies now offering their expert services in investing abroad, the door has opened for the ordinary man, with some money to invest, to make some money. Companies such as Axis are investing in countries like Romania, which has been accepted into the EU in 2007. The price of property has risen by over 50% in the last two years, with some areas experiencing even more growth. The much-respected Channel 4 program ‘A place in the sun’ predicts that £50,000 invested in Romania just now will be worth around £260,000 in 10 years’ time. Other countries being considered for EU membership are Croatia and Turkey.

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