subject: How To Profit From Low Property Prices [print this page] If you are thinking in investing in a property, then where you purchase it may have a big affect upon your return on investment. It is common knowledge that London is home to some of the highest property prices in the UK, but just because the cost of an apartment or town house is higher than elsewhere, it doesn't mean to say that it is the best place to invest in a property. Before deciding to make a purchase, look at the financial trends in the markets across the UK, and research news reports for areas that are being developed.
One of the best ways to make a profit on an investment is by purchasing a property in a run-down area that is being redeveloped. The property prices in these areas are relatively low, and with work will yield a more profitable return. These areas are more profitable than a new development because they have an already established infrastructure, there is more scope for building renovations and the area will be steeped with local history. The addition of government money to improve the area will add to these factors, making it a desirable area within a short amount of time, and therefore increasing the potential profit margin.
When property prices increase, or indeed decrease, it is not a uniform change across the whole housing market. For example, the property prices in London have increased by around ten per cent over the last twelve months, whereas in Cardiff, the increase has been close to twelve per cent. This can be compared to Northern Ireland where prices fell by as much as six per cent. The wise investor understands that it is not the price of the property that counts, but it's potential to increase in value over an amount of time.
Some of the most profitable properties to invest in are townhouses which are close to schools, shops, parks and train stations. Having a wide range of facilities and amenities close by means that greater variety of buyers will be interested in purchasing your property after renovation, and where the demand exceeds supply, there is more profit to be made. The golden rule about increasing the profit potential is to refurbish and renovate for the masses. Imprinting your own personal tastes on a property will only serve to put as many people off as it appeals to, reducing that much needed demand factor. The ideas is to push up the property price enough to recoup the expenditure, and hopefully make enough profit to begin another project.
