Can you Really Make Thousands from Property Investment?

Property investment is an emerging industry that is becoming increasingly welcomed by people all over the world. Investors are enticed by the robust rental yields certain locations in the UK offers, alongside the excellent opportunity to secure strong capital appreciation. People decide to start investing in property for many different reasons, one of the main ones is to supplement their monthly salary and to gain a source of passive income, while others aim to save for retirement.
Regardless of the particular reason, the most significant reason people invest in property is to produce a steady income. Property investment is a powerful wealth building tool that has made a multitude of individuals millionaires, providing it has been executed correctly. Not everybody that embarks on a property venture becomes successful. In fact, there are many people that initially have the confidence to invest that find themselves stuck later on as they struggle to build the wealth they imagined.

Cash Flow

Cash flow refers to the additional income you will receive each month that you own the property. These cash flow figures can fluctuate significantly, often leaving numbers deceptive as in certain months the repairs and maintenance may be higher or lower compared to different months. At the end of each year of investment it may be worth your while calculating a median cash flow over the 12 months, this way you can easily compare an average year upon year.

It is important to factor in non-monthly costs, for example the amount of time that the property is vacant for, any necessary repairs and capital expenditures. This refers to any projects which are of a higher value that may need to be replaced every so often, alongside the regular, everyday expenses of utilities and management fees.

Capital Appreciation

This refers to the profit made on an investment or purchase of an asset, measured by the increase in its market value over the invested amount of start cost price. When the value of a property increases this is referred to as appreciation which maximises your return on investment. The chances are that anywhere with the right combination of rich employment prospects, excellent schools and extensive transport links are already showing positive signs of a property price boom.

RW Invest property investment specialists, based in Liverpool, offer a diverse range of buy to let property investment opportunities across thriving parts of the UK. RW source developments in proximity to multiple amenities whilst keeping their target tenant in mind. This ensures that investors keep void periods to an absolute minimum as there is a strong demand for properties as they have been carefully selected through thorough due diligence.

One other type of appreciation that can come into play is known as ‘forced appreciation’ which is the increasing value over time due to physically enhancing and improving the property yourself. As an investor you have more control over forced appreciation as the price is not dictated by uncontrollable market trends, but rather by the investor’s actions. Ways to boost this would be to increase the monthly rent, minimise vacancy rates, add extra bedrooms or strengthen your curb appeal.

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