Alan Forsyth: Maximise Property Profits by Choosing a Good Location
Parmdeep Vadesha
December 04, 2008
Many experts say that property is about three things: Location, location, location. The popularity of this mantra shows just how much location matters when investing in bricks and mortar. As property expert Alan Forsyth puts it: The location of a property commands the profits you bring in and capital growth it provides.
Why property?
A lot of people often ask what benefits property offers investors. One of the reasons is that property provides capital growth, or in other words, the money you make as the value of your property increases over time. Property is also a popular option for those who prefer less volatile investments. Property is not entirely risk-free, but you can protect your property portfolio by diversifying it and spreading your risks across various asset classes.
When choosing properties to convert to income-generators, it´s always considered a wise strategy to buy below market value since it helps you earn higher profits. You can obtain genuine BMV properties by dealing directly with motivated sellers who are on the lookout for a quick sale and are typically amenable to highly discounted prices for their properties.
Location
To find a quality property in a good location, you first need to do your homework and perform due diligence. Doing research helps you obtain the right information that will enable you to make good decisions. Subsequently you will learn that it pays to purchase an excellent property in a location that exhibits telltale signs of growth and where property prices are expected to increase. Property expert Alan Forsyth states that doing so allows you to build your property wealth and grow your property portfolio.
Experts enumerate two of the most important factors to take into account: a growing economy and areas where demand outstrips supply. You don´t want your property to suffer severely from market adjustments. Instead you want it to hold its value to ensure that you have a stable investment in the long-term. Many reports also state that certain places are magnets for buyers and renters. These include good commuter towns that are in close proximity to schools and universities, attractive suburbs that have family-friendly properties, market towns and properties located by the seaside. What all these places have in common is a combination of strong, robust demand and insufficient supply.
Investment strategy
Now that you know just how crucial an investment property´s location is, the next most important aspect to consider is your property investment strategy. According to Alan Forsyth, you will need to determine the amount of money you wish to invest initially, your age, the financial commitments you´re bound to, and your investment goals. To begin with, determine your answer to these three important questions: How much risk can you afford to take? What time scale are you working to? How much time will you be able to allot for your property portfolio? All these questions will help you analyse the type of property you need to acquire, choosing an area for your property purchase and the number of properties you need to buy.
You can never go wrong with investing in a BMV property located in a highly profitable area where capital growth is anticipated and an increase in values is predicted. With this strategy, you don´t just put yourself in a better position to add to your property portfolio. You´re also better situated to earn higher profits from your property investment.
Why property?
A lot of people often ask what benefits property offers investors. One of the reasons is that property provides capital growth, or in other words, the money you make as the value of your property increases over time. Property is also a popular option for those who prefer less volatile investments. Property is not entirely risk-free, but you can protect your property portfolio by diversifying it and spreading your risks across various asset classes.
When choosing properties to convert to income-generators, it´s always considered a wise strategy to buy below market value since it helps you earn higher profits. You can obtain genuine BMV properties by dealing directly with motivated sellers who are on the lookout for a quick sale and are typically amenable to highly discounted prices for their properties.
Location
To find a quality property in a good location, you first need to do your homework and perform due diligence. Doing research helps you obtain the right information that will enable you to make good decisions. Subsequently you will learn that it pays to purchase an excellent property in a location that exhibits telltale signs of growth and where property prices are expected to increase. Property expert Alan Forsyth states that doing so allows you to build your property wealth and grow your property portfolio.
Experts enumerate two of the most important factors to take into account: a growing economy and areas where demand outstrips supply. You don´t want your property to suffer severely from market adjustments. Instead you want it to hold its value to ensure that you have a stable investment in the long-term. Many reports also state that certain places are magnets for buyers and renters. These include good commuter towns that are in close proximity to schools and universities, attractive suburbs that have family-friendly properties, market towns and properties located by the seaside. What all these places have in common is a combination of strong, robust demand and insufficient supply.
Investment strategy
Now that you know just how crucial an investment property´s location is, the next most important aspect to consider is your property investment strategy. According to Alan Forsyth, you will need to determine the amount of money you wish to invest initially, your age, the financial commitments you´re bound to, and your investment goals. To begin with, determine your answer to these three important questions: How much risk can you afford to take? What time scale are you working to? How much time will you be able to allot for your property portfolio? All these questions will help you analyse the type of property you need to acquire, choosing an area for your property purchase and the number of properties you need to buy.
You can never go wrong with investing in a BMV property located in a highly profitable area where capital growth is anticipated and an increase in values is predicted. With this strategy, you don´t just put yourself in a better position to add to your property portfolio. You´re also better situated to earn higher profits from your property investment.
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