The key to great property investment? Have a little patience
Tyneside Group MD, Robbie Kalbraier, explores the key to good property investment, how regulation is helping good landlords come out on top, and why the North East is ripe for investment.
Newcastle has always been a city that isn’t content to sit still – from innovation thriving in the university, to new bars and restaurants catering to every audience, to the constantly changing landscape, cranes are almost as synonymous with the skyline as the iconic Grey’s Monument.
With the synonymous success of large-scale businesses and the growth of the local SME market continuing to increase the population attracted to the city, there is an increased demand for properties in which to live, work and socialise.
This presents a great opportunity on which property investors can capitalise – however, that can be a lot easier said than done.
Gone are the days when landlords could operate on a whim and conduct the perceived ‘fly by night’ operation that has been the source of industry horror stories and a negative public perception, although it is far from the only industry to suffer these fates.
The industry has toughened but the legislation, which could be perceived as arduous, is having the desired effect - the best way to succeed in the industry is to be a good landlord. Complete compliance provides prospective tenants with the knowledge that their interests are fully protected and will subsequently increase the desirability of an investor’s property.
It is also important to note that there is no such thing as a risk-free investment, particularly when it comes to property. Being a successful property investor is all to do with managing risk; there is a lot of ground work that can be laid out before committing any money. This includes ensuring you are compliant, a continuous process that can’t simply be addressed once every few years. Being serious about property investment means being prepared to commit time and money regularly to furthering your industry knowledge.
Investment properties come in all shapes and sizes, what’s perfect for one investor might turn into a disaster for another. You have to understand the market, using solid research and data to back up your plan, as opposed to pushing a project based purely on your own thoughts of the success it will become.
Patience is key to a great investment opportunity.
Don’t rush your decisions, there will always be another opportunity. Despite how perfect something might appear in theory, pay attention to every detail. If you’re not satisfied that you don’t have all the answers, seek them out. Property investing can be tricky, many big schemes have failed over small legal technicalities that would have appeared earlier if the right questions have been asked early enough.
Having a hand in shaping the landscape of your city can be immensely satisfying but, before you can begin any transformation, there’s an immense amount of groundwork to do.