There can be many pitfalls to letting out property for the unwary investor. If done incorrectly the goal of the investment can fail to achieve the desired returns. Common problems with letting property include:
- TENANT MANAGEMENT ISSUES SUCH AS LACK OF TENANTS
- PROPERTY MANAGEMENT ISSUES TO DEAL WITH SUCH AS UNEXPECTED BREAKDOWNS AND SUDDEN EMERGENCIES
- UNPLANNED EXPENSES
- POOR CASH FLOW OF THE ASSET LEADING TO NEGATIVE OR INSIGNIFICANT MONTHLY NET RETURNS
- NOT ACHIEVING THE CAPITAL APPRECIATION OF THE PROPERTY
We are certain that no one wants to end up in this situation and we know that approaches which may have worked in the past will not always be the most effective today.
ELVinvest is your partner of choice for successfully navigating through property investment complexities, allowing you to be able to benefit from the traditional advantages of a real estate investment:
- COMBINATION OF CAPITAL APPRECIATION OVER TIME AND A STABLE STREAM OF CASH FLOW
- SECURITY IN BRICKS AND MORTAR
- PROTECTION AGAINST INFLATION
- TANGIBILITY OF THE ASSET – AS THE SAYING GOES “AS SAFE AS HOUSES”
Most of the properties available on the market can be great residential homes or holiday homes, but they do not necessarily represent a good opportunity for those looking to reach their financial goals.
At ELVinvest the fundamental assumption for a successful real estate investment is that it must be identified and managed in a strategic and professional manner, free from emotional decision making. It must however be recognised that whilst a property can be the perfect investment for one investor, it may not be for another as investment criteria can differ significantly.
What do we mean by this? The objective behind the investment decision is of paramount importance.
Looking for an immediate source of income or aiming for capital appreciation are very different strategies that require equally distinct investment plans. The most suitable strategy must be chosen in order to avoid unnecessary risks or dissatisfaction. The chosen strategy will be determined by the investor’s individual financial goals whilst utilising ELVinvest’s knowledge and experience in the property investment asset class.
For example, a property suitable for investors looking to generate positive cash flows will be located in more popular rental areas which leads to an optimal ratio between rental income and acquisition cost therefore maximising the net return on investment.
A property with a prevalent capital appreciation target may be located in more affluent areas with good appreciation potential or in areas subject to investment, development and regeneration.
Our experience, strategy and proposal allows us to clearly establish a bespoke investment plan aimed at achieving the specific objectives of each individual investor.