The current state of the property market – what to look out for in 2020
Property investment is an exciting and potentially lucrative long-term endeavour, but there are risks involved, and some areas are better to invest in than others, so you need to make sure that you’re making the right decisions when it comes to allocating your capital going forward.
Considering a long-term investment strategy in 2020, and wondering where might be best to allocate your capital? Here’s some general information about the current state of the property market in 2020, and some of the different things that you should be looking out for.
The best areas to invest
Of course, the most important factor in an investment property is its location, and the market is constantly shifting and changing, so it’s crucial that you as an experienced investor or even beginner keep your eye on what’s going on dynamically at all times to give your investment portfolio the best chances of sustained success and growth.
RWinvest, a property investment company situated throughout the UK with properties nationwide, detail in many of their guides the importance of Liverpool as an investment hotspot currently. This is due to a range of beneficial factors similar to what Manchester enjoyed a few years ago, such as high rental yield averages (with the highest in the country being within the L1 postcode), affordable house pricing relative to these rental yield costs (meaning that investors can start making a notable amount of profit back right away on their purchase), and also a massive amount of regeneration planned for the city going forward, meaning that the demand will continue to surge for years to come.
Diversifying a portfolio – As a general piece of advice, if you’re an investor that already has an investment property, or perhaps multiple investment properties, under their belt, then you should think about making sure your portfolio is secure and bolstered in case of any market shifts. One of the best ways to do this is by diversifying your assets, and with property this can mean taking the scattershot approach across many different areas and cities, rather than just in one location.
Purchasing multiple apartment units across different buildings and different cities might be a more secure in the long term than perhaps buying multiple units within one building, for example, as it better protects you down the line if one of your income streams begins to dry up.
The Corona Virus A worldwide pandemic that is having an effect on pretty much every industry and every individual in one way or another, the COVID-19 virus is something that’s unavoidable, and should be addressed with regards to the property market, too. From large-scale issues such as the credit crisis in 2008 and even before then, the property industry has experienced standstills of this calibre before, and uncertainty and doubt will likely pull people away from the market to begin with. While it might not be the first thing on your mind to invest for the future when you’re trying to self-isolate and keep to yourself, but those who keep business-minded in times like these can stand to seize an opportunity and put themselves at a vantage point for when we come out of the tunnel with regard to these trying times. Plus, with the possibility for remote viewings with technology such as Virtual Reality increasingly in use, it’s a lot easier to get involved than it might have been five or ten years ago.