Investing into real estate has been a preferred method of investment since the stock market crashes in the early 1900s. There are 4 main things to look for when property investing; rental yield, capital appreciation, price and timing.

Yield

Before investing into a property, perform a rental yield check with our net yield calculator and check to see if the yield is worth consideration. With an interest-only mortgage, a simple view would be to compare the interest rate to your rental yield as this would determine if you are going to have left over cash or if you need to top up the mortgage with your own funds. However, interest-only mortgages are not always so common.

Capital appreciation

When considering capital appreciation, it is often very much down to the location and rarity of the property. For example, a property that is located in a city suburb, with lots of space for development surrounding it, will certainly appreciate less or at a slower rate than a confined premises located in a more prestigious location. Finding those areas with less development potential is usually a good idea. Look for property with confined space for development surrounding it, such as registered buildings, beach front locations, historic buildings, city centers, residential housing etc. If you like to gain some insight into local areas of potential, please contact us and we will be happy to assist.

Price

Choosing a property with a good location and rental yield will not suffice if you are paying an over-the-top purchase price. Be sure to research the local property price index and assess whether your chosen property is above or below the market value. Paying more will simply decrease your yield and take longer for it to appreciate. Negotiate the price and if purchasing with cash or in bulk, make sure you secure a suitable discount.

Timing

Timing is crucial when entering the market, as buying during a peak will almost certainly negatively affect your rental yield and capital appreciation for the short-mid term. As hard as it may be to gauge, and as hard as it may be financially, try to invest at the end of a market depression for the best results. Here you are far more likely to pick up quality stock and far more likely to guarantee a healthy short- term appreciation.

Investor Club

TallinnHome's' "Investor Club" is a discreet service for investors who are looking for investment opportunities. TallinnHome handpicks attractive, interesting and/or exclusive offers from our partners and will send periodic e-mails to members with details of such offers. Many of the "Investor Club" properties are not available to the public or openly marketed, therefore by joining our "Investor Club" you will receive exclusive opportunities for investment and have an immediate investment advantage.