Q. I have been left some inheritance money from my grandparents and wondering if it’s still worth investing in property given the fact that money in the bank is pretty worthless with the interest rates still so low. I’m a complete novice when it comes to property investment so some good sound advice would be appreciated?
A. Investing in property, following a windfall or bonus has always been a sound idea. Like the stock market, and interest rates the property market too goes up and down, but generally as long as it’s a long term investment you will always see some decent capital growth. The market prices are still fairly completive at the moment so jumping on the investment ladder now as it starts its slow move towards going up again would 100% be a good move for any serious investor right now. It is however extremely important to make sure that you buy the ‘right’ kind of property for your budget. Location is always mentioned tirelessly when it comes to buying and it has to be at the top of the list for any serious investor. The saying buy the worst house on the best street is expert advice. Don’t be fooled into thinking that a shiny new property in a so so location is going to override a slightly older property in a top location, it is never the case. Natural light is important too and if you can get some outside space and a decent view these will also score highly when it comes to renting it out and reselling in the future. Being close to public transport and amenities also adds to the value and popularity of any good investment property. When viewing, ask for the estimated rental value of the properties too and pick the agents brains as to how quickly a property is likely to let? Discuss your options with regards to a let only service or a full management service, depending on your life style and time available you may want to ease the burden and go for full management as this will leave you free to carry on as before, knowing your investment is in good hands.