On this page, we constantly add our most frequently asked questions. If you don’t find the answers to your questions below, please reach out to us at firstname.lastname@example.org and we’ll provide you with the assistance you need.
Property investment applies to the purchase of property anywhere in the world. Of course, some places do better than others for the ROI (Return of Investment) and if done properly, can quickly become highly lucrative. It involves the purchase of a property, typically one that is still being built (off-plan property), with a view to enhancing it and either selling it on or leasing it out in order to gain a return.
The first thing to do is to identify how much you really have to invest in the property market. Are you seeking instant returns or are you happy to wait and speculate? Also what is key is being able to choose a specific Real Estate Investment Strategy. You will need to line-up your financing and likely raise cash for down payments & reserves.
They say that in Hong Kong there is never a good time to buy a property and there’s never a good time to sell a property. Aside from that geo-specific anecdote, we’d advise that you understand, exactly, the market that you are investing in. Property investing is generally a great investment option since it can generate ongoing passive income and can be a good long-term investment if the value increases over time. As an average, markets with high growth are better investments than those with lower growth, but a stable growth rate is just as important in the long run.
That’s a great question and the answer is that it depends! Banks on average request that potential property owners come up with at least 15-20% of the property purchase price as a down payment (deposit). That means you will need a minimum of $200,000 upfront for a property valued at $1,000,000, for example.
The most important point in answering this question is emphasizing the importance of treating each rental property as its own business to serve as a good investment. Receiving rent is dependent on multiple variables, including the local and international economy, competition, your building policies and a ton of other factors often beyond your control.
Most banks will require a property investor (or real estate investor) to put at least 20% down on a rental property before any loans can be discussed.
Investing in rental properties is a great way to build wealth, but it’s still relatively slow and requires a lot of effort, experience and time management.
The “2% Rule” is a concept that stipulates that for a rental property investment to be “good”, the monthly rent should be equal to or higher than 2% of the purchase price.
Values greatly vary depending on the geographical region in the UK. But having said that, over the long-term, property investors have been onto a winning-streak. Values are around 24% higher than two decades ago, according to the average that we discovered from our research.
The answer here should be really a blend of commercial and residential.