Important Property Investment Tips

Investing in real estate can be a tricky business especially in present economic conditions. However, there are indicators and things you can do to ensure you make the best possible decision. Below are some property investment tips that should help you on your way.

Location is one of the most important factors when investing in property.

Consider the area or country that is likely to provide you with the best return. Many would be investors fail to look beyond their local areas which means they are potentially losing thousands by ignoring other opportunities.

If you are considering other countries look at their economies. Are they growing fast, is there lots of national or foreign investment or are they perhaps about enter the EU. All of these positive indicators will have an affect on the property market.

The same applies to areas with in your own country. You should look for local regeneration initiatives. For example, the East London train line is going to be extended, this will increase demand in the areas along this extension and increase local property prices.

And you should also look for large businesses moving into an area. This normally means more jobs and more jobs means greater demand for housing.

Consider the cost of letting the property and the likely return on your investment. It's likely that you will have to factor in letting agent management fees, mortgage repayments, maintenance costs (about 10-15% of the yearly rent) and the possibility that the property may be empty for 1 month every year.

When purchasing a property make sure it will be easy to maintain and has no major defects. Low maintenance properties mean fewer headaches for you.

Choose a safe area, look at local crime rates. It's possible to find out how many youths have ASBO's in an area this is a good indicator of local crime levels.

The amount of money you make from a property investment is largely determined by the quality and suitability of the property in terms of your target market and the location of that property. Even in these hard times there are still viable investment options for the savvy property investor.