Starting a business and turning it into a success is a tough task, and those that manage it stand to transform their lives. However, successful entrepreneurs who turn their dreams into highly profitable realities can find themselves with an unprecedented and significant amount of wealth, asking themselves how they can make their newfound capital go further.
One popular option for savvy investors has been the UK property market. Many believed that Britain voting to leave the European Union would have a significant negative impact, but the reality has been somewhat different. While the full ramifications of Brexit will not be felt until the UK has left the EU, investors can be confident that the supply and demand imbalance that exists in London should keep the market buoyant. It is this continued resilience which makes the capital a profitable choice for investors and entrepreneurs looking to make the most of their capital.
Historically, high monetary thresholds have kept property investment out of reach of the majority of would-be investors. However, new models with thresholds as low as £20,000 per investment have opened up the market to many successful entrepreneurs who would never previously have been able to invest.
New investment platforms can help investors place their funds in a range of real estate projects without the burden of managing a buy-to-let property or overseeing a development project. Instead, investors more options to choose from, particularly regarding how much equity they wish to invest and in what projects.
Real estate investment is not an exact science and while it does have its associated risks, there are some guidelines that can put new investors ahead of the game. Below we’ve detailed five top tips for curious entrepreneurs looking to get into property investment.
- There is no such thing as too much research
- Don’t forget the importance of location
- Always seek advice
- Join a community of investors
- Understand the exit strategy
There is no guaranteed script for success in something as susceptible to outside forces as the property market. Although it is impossible to assure profit, by following this guide you can better position yourself to avoid pitfalls and make the most of new opportunities from property firms and the investment sector.
By Tal Orly, CEO and founder of Cogress