One of the biggest secrets to successful property investments is having an exit strategy in place to reap the planned financial rewards.
By knowing when and how a buy to let will end, an investor can appreciate where their investment strategy will begin. In order to do that, an investor must understand the types of strategies to investing.
Most people who invest in property in the UK are doing so for a variety of reasons – some for financial freedom and some to boost their pension plan.
As for new investors in property, they tend to be looking more for rental income from their buy to let and for their profits to be boosted by capital growth in the property value.
Yields on an investment property are generally around 5% and 7%, depending on the location and property expenses. Rightmove, in their recent survey, revealed around a third of buy to let investors were looking for a minimum 5% yields. Around 11% of investors were looking for a more ambitious target of around 10%. We at Silks aim to provide our investors with a minimum of 8% rental yields.
For more details on Silks Investments, contact us to book in a free consultation.
Profit from Property Investment
Real profit from property investment comes with capital growth. With all financial investments, research is key. This may mean having to invest in property that is not nearby but in an area where property values have the potential to grow.
Creating an exit strategy is crucial for successful property investment. Unless an investor knows when to cash in, they are effectively running a business with no business plan.
Investors should appreciate whether they are going to be selling up at a given date or when the property realises a big capital growth or whether they simply want to retire and sell up.
Many investors don’t always realise but setting up investments is the same as setting up a business. It requires careful planning and strategies to meet end goals – as with all successful strategies.
Silks Investments can help you create a personalised investment strategies, complete from the beginning stages to the exit strategy. Email us at firstname.lastname@example.org.