Good advice for property investors
Investors should educate themselves about taxation in the new year
Thursday, 12, Jan 2006 12:59
Property investors are not a breed apart when it comes to learning something new, and should make new year's resolutions just like the rest of us.
That is the message from experts at the forthcoming Homebuyer Show, who have devised four key pledges to help property investors make 2006 a prosperous year.
Investors should be prepared to further their education, review their property portfolios and try something new, all while making sure they enjoy life more, so the experts say.
The first thing they can do is improve their education by learning about all aspects of investment that affect them.
This includes learning about taxation to minimise the property tax they pay, researching market conditions to spot new investment areas, and keeping on top of government legislation such as real-estate investment trusts (Reits) and the impact they will have.
Next up is ensuring their property portfolio is healthy, disposing of underperforming investments which reduce the profitability of more successful investments. Investors should slim down to only those with the potential to perform well, releasing capital to invest elsewhere.
Third on the list of new year's resolutions for property investors is trying something new, like an overseas property investment in places like Bulgaria, the Czech Republic and Hungary. Further afield, Thailand, New Zealand and China are also seeing an influx of investment into their property markets due to their potential for strong capital growth and good rental yields.
Finally, to reduce stress, property investors could hand over the management of their rental properties to letting agents. They will look after all the day-to-day issues such as tenant inquires, carrying out minor maintenance and collecting rent, and deal with all the paperwork freeing up the investors' time.
"The new year is a great time for people to review their investments and decide what they want to get out of them over the next 12 months," said Nick Clark, managing director of the Homebuyer Show.
"Property both in the UK and overseas can offer opportunities to investors at all levels, whether it be overseas holiday homes, buy-to-let portfolios or commercial investment, investors can help to turn 2006 into a successful year."
For more information on the Homebuyer Show see: Property on show: March's property exhibitions
To find a cheap UK mortgage, go to www.aboutproperty.co.uk/mortgages.htm