It’s no secret that savings rates dramatically dropped in 2020 as a result of the global pandemic and the impact it’s having on the economy. With crippling costs to people worldwide, it opened up a new line of possibility for many, as those with savings looked towards investments as a way to generate interest or returns in the new year.
The property market has performed surprisingly well given the current circumstances. At the end of 2020, the market remained stable with continued growth for property prices. It’s also the more reliable choice when it comes to investing money as opposed to the riskier market of stocks and shares, which experienced severe drops last year.
However, any investment brings a certain level of risk to the table, as unlike depositing money into secure savings accounts, with interest guaranteed, investors can fail to make any returns at all. They could, in fact, risk losing their initial down payment too, so it’s worth weighing up the costs and doing your research beforehand.
Having said that, for experienced investors who are prepared to conduct the appropriate due diligence and generate income over the long-term, property investments can provide some of the most lucrative deals available.
In this post, we look at some of the steps you need to consider before setting up a property investment business in 2021, taking into account the current coronavirus restrictions affecting certain aspects of the process. These tips are more associated with buy to let property investments, the more common type, favored by both first-time investors and accomplished property developers.
Whether we want to or not, the pandemic has forced us to adopt new ways of thinking, and when it comes to being innovative in the world of property investment, there’s no exception. With remote working and a lack of face to face contact, investors and those working in the property industry have turned to technology to give their best efforts at helping to keep the market afloat and open for business.
Although the technology may not be new, using it is slightly different and has become much more prominent throughout the property world. Virtual reality (VR) technology has been used by off-plan investors for several years, making overseas transactions and processes much easier. Now it has been adopted by many companies, not just to close international deals but to open up potential investments and development opportunities to individuals both locally and across the globe.
By incorporating VR into property investment strategies, investors can experience a full 3D view of their investment. Remote viewings have extended the line of inquiry regarding viewing blueprints and floor plans, helping to connect savvy investors with lucrative opportunities.
The use of VR technology in assisting businesses has increased over the last year and will continue to do so throughout 2021 and beyond. RWinvest, an award-winning property investment company in the UK, backs the use of technology such as VR, as it kept its doors open for business during national lockdowns. By offering virtual viewings, voice calls, and screen shares, the company has continued to thrive and shows no signs of slowing down.
Something else to consider that’s used a lot in marketing is drone technology. These devices are becoming essential in capturing property developments and their journey to completion. Investors can witness builds and the surrounding area from detailed photographs and videos taken by the drones, and document progress on their property investments.
Looking to the future, drone technology will not just be used for viewing property developments but also for structural work, aiding workers on construction sites to complete tasks more efficiently.
Opt for the best locations
If you want to diversify your property portfolio but would prefer to have your investments within arms reach, you could look for the nearest city and explore the best postcodes for properties in that area. For the better locations, those that should see higher growth than others will undoubtedly be in popular places where the market for students, working professionals, and great education systems are thriving.
Carrying out research on the potential growth for each of your property investments is crucial for making successful returns. Not only will you see a huge increase in property values, but if you’re opting for a buy to let investment, you should expect fantastic rental yields and high tenant demand if you choose the right area.
Invest in eco-friendly properties
When it comes to sustainability and minimizing our effect on the environment, smart home technology should be considered in order to secure property deals, especially if you’re looking to invest in new developments. Both technology and the demand for eco-friendly properties go hand in hand with what people are looking to purchase and rent in 2021.
If you’re purchasing a property that could do with a few home improvements, you could invest in smart technology to bring the place up to date. This will not only improve the quality of living but increase the value of the property too. Adding the latest eco-friendly features can enhance a property’s efficiency, minimize carbon-footprints and even increase security for your investment.
Some of the most beneficial features to implement include smart thermostats to automatically adjust the property’s temperature making it more energy-efficient. Cameras and sensors can also be installed at the property to eliminate thefts from taking place and protect those that are most vulnerable.
These can all be controlled remotely, and updates can be sent directly to your smartphone. By using a smart security system, you could even end up with lower insurance costs too.
Further features to invest in might be eco-heaters, eco-lighting, and systems that recycle rainwater to aid plumbing. No need to worry about running up excessive energy bills either as you can turn the lights off, lock the doors, and lower the heating straight from your phone. If you reside in the property, you can also use smart control systems such as Google Home that responds to voice commands.