A lot of people probably don’t realise that the best investment ideas are usually the simplest. One of the secrets though is knowing where to go for the lowest risk but with the best return.
Try and disregard the current property downturn as historically house prices do increase quite dramatically over the years. You can still make a decent low risk investment out of property.
When looking for a good property investment remember the age old adage, LOCATION, LOCATION, LOCATION. Location is the number 1 factor when looking at property investment.
Here in the UK house prices double every 10 years historically so you can make the most of your money by getting into the property market. Property is a prime example of a simple idea being arguably the best investment idea.
Let me spell out a quick example. We’ll keep figures nice and round for ease of calculations. Invest in a house for 150k and keep it for ten years. It should be now worth circa 300k.
If (in the above example) buying on a mortgage you should shop around for the best deals as even a little saving on your mortgage rate could mean a big cash saving. Remember you always need to keep some cash available for the next good investment idea.
**Not so much a great investment idea but using our mortgage overpayment calculator you can find out how to knock years off your mortgage**
OK, back to the article now.
Chopping and changing lenders can be a hassle, but the ultimate return on your investment can be much more if you do a little work. The mortgage is a key factor in any property investment idea.
So many new investors are caught out by the peaks and troughs of the property market. They get in late and buy at a peak. Then panic and try to sell in a trough. This is a guaranteed way to lose money and confidence.
Going back to the phrase, simple is usually best, you need a system to work from to maximise any chance of great returns. If property is to be your medium then the formula has to be, wait for a trough, establish an affordable good location, obtain a good mortgage, get a good management team in to secure regular premium rentals.
The best ideas are usually the simplest, with the wheel being one of the simplest and best. Don’t confuse yourself when searching for a good investment idea. Simplest is best. Click this link for some good investment ideas
