The property investment industry is highly profitable and lucrative, which is why so many people venture out into property when they want to make large sums of money over a longer period of time. Since the property market is one of the most stable and secure investments in the industry, investors often find they make enough money to retire early and start their new life in retirement. However, retiring early doesn’t happen overnight and it takes a lot of effort and time to reach this.
Are you interested in being able to retire early? Below is a list of ways that countless property investors are making the most of their business ventures and making huge amounts of money – enough to stop working and focus on their life in retirement!
The most important aspect of your investment is doing research prior to purchasing. Ultimately, your research before buying an investment will make a world of difference in deciding if you can retire early. This is for multiple reasons: you may get higher rental returns in certain parts of the country or perhaps more return on an apartment investment over a student one. Looking through online guides can help you choose what sort of investment to opt for before starting to look at anything else. This step is one that has been very helpful to some investors and an unfortunate step missed for others. Be sure on your investment type before you give over any of your money as you need to be sure it’s what you want and will bring you what you expect.
Investing in highly demanded areas with good rental yields
Certain cities in the UK have high rental yield returns and offer investors the chance to make a large sum of money from their purchase. According to RWinvest’s Buy to Let guide, northern cities such as Liverpool and Manchester are high up in the list of places to purchase. Liverpool’s city centre L1 postcode is reportedly reining at the top of the list for places to purchase buy to let developments due to ongoing regeneration within the city. Investing your money into a property that is highly in tenant demand will mean you’re always receiving a rental income every month, plus the value of your property may also be largely increased when you go to sell it years later. The more in-demand your property is, the more likely you are to retire early and continue on with a relaxing retired life.
Properties gain capital appreciation
When anyone purchases a property, over time it will gain capital appreciation (if you invest in the right area that is increasing in value rather than decreasing!). This means that while you may have bought a house for £150,000 10 years ago, it could be worth £250,000+ now. Not only have you made money through capital growth of the property and its surrounding area, but you also make money through rental repayments every month. Most financially comfortable property investors will have properties that over the last few years have gained capital appreciation. Therefore, when that property investor sells their investment to someone else, they will make a large sum of money from it.
Building up their property portfolio
Investors who want to make the most money ready to retire early are those who have their fingers in many pies. Property is hugely lucrative and there is an ever-growing demand for tenants in different cities, investing in multiple properties across the country is sure to sit well with you when you’re able to retire a lot earlier than your counterparts. It’s recommended you build your property portfolio if you’re planning on using the profits as a form of income or if you want to save up some significant savings in future. Take advice from the experts and purchase multiple properties if you can afford to do so, this also gives you a backup if you ever need one too.