Eight Golden Rules for Investors

Investing in property can be a rewarding venture, especially with the promising outlook for 2024. Jonathan Rolande, the founder of House Buy Fast, shares his invaluable insights to help investors maximise their chances of securing capital growth this year.
Here is our summary of the Eight Golden Rules to guide you on your property investment journey:

1. Understand Demographics:
Start by examining the demographics of the area. While regions with more older residents tend to have stable prices, areas with a higher proportion of movers present greater potential for growth. Strike a balance that aligns with your investment goals.

2. Evaluate Educational Institutions:
Check the local educational landscape. The presence of new schools or improvements in ratings for existing ones is a positive indicator. Many prospective buyers and renters are willing to pay a premium to live near quality educational institutions.

3. Analyse Ratios:
Examine market ratios in the area, focusing on the number of properties on the market and the percentage that has been sold. A 30% or higher sold ratio is indicative of a healthy market. Additionally, keep an eye on rental availability; a limited number of properties for rent in the postcode area is a positive sign.

4. Study Past Price Trends:
While past performance doesn’t guarantee future outcomes, areas that have consistently outperformed or held steady during downturns should be prioritized. Historical price trends provide valuable insights into potential future growth.

5. Consider Crime Rates:
Lower crime rates contribute to a safer and more desirable living environment. Research and prioritise areas with favourable crime statistics to enhance the overall appeal of your investment.

6. Investigate Local Developments:
Keep an eye on nearby developments. Large-scale investments by developers signal growth, but be cautious about potential saturation due to increased buy-to-let activity, which could impact property prices negatively.

7. Assess Flood Risks:
While flooding risks can be concerning, online searches may exaggerate the issue. Investigate thoroughly and weigh the potential risks against other investment factors. Be informed but not overly alarmed by flood possibilities.

8. Identify Value-Adding Opportunities:
Explore ways to add value to your investment. With the right permissions and vision, property improvements such as relocating a kitchen, extending living spaces, or adding a garage can enhance both rental income and capital value.

In conclusion, armed with these Eight Golden Rules, investors can navigate the 2024 property market with confidence. Stay informed, assess opportunities meticulously, and seize the potential for capital growth in the evolving real estate landscape. Happy investing!

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