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How Quickly Can I See My Returns From Property Investment?
Property Investment BasicsGiven that you invest in property to make the most of its potential for returns, you will naturally want to know how long it will take before you start to see income appearing in your bank account.
There is no simple answer that fits all properties, however, and so the question of how quickly it will take to see returns from property investment depends on what kind of property you are investing in. For instance, if you invest in a property which is already tenanted, you would start seeing returns instantly from your monthly rental payments.
You typically won’t see returns from rental income until tenants have signed a contract to live in your property. With this in mind, you’ll want void periods where no tenants are living in your property to be as short as possible.
More About Generating Rental Returns
So how can you ensure void periods are kept to a minimum and your property is tenanted as quickly as possible? One tip is to market your property on portals and with estate agents to help ensure you have tenants living in your property and paying you rent. If you’re using a property management company for your investment, this is a step which they would be involved in.
Buying an existing property will mean the wait for returns will only be as long as it takes to find a tenant. Given the high demand for rental properties the UK is currently seeing, this may not take that long.
You may even buy a property which is already tenanted, in which case you will be able to start earning returns straight away.
If you are buying an off-plan property, the question becomes more complicated. Given that off-plan properties are sold whilst still in development, it will take longer to see returns from this kind of property than others you can invest in.
When initially researching the property, you will likely be given an estimated completion date. Depending on the scale and size of the project, this may be anywhere from a few months to several years.
Developments being constructed from scratch will take longer to complete, so be sure to check the estimated completion date when you decide to invest in off-plan developments.
Investing with RWInvest means we will provide regular updates on the progress that developments go through, to ensure investors are always kept in the loop about how close their investment property is to being completed.
Once the completion date approaches, investors will be able to visit the construction site to see how their property is looking in person, to help assure them of the progress being made and that they will soon be able to see returns on their investment.
Investing in off-plan property requires far more patience than you would have to have if investing in standard buy-to-let properties, as there is a much longer wait time to begin seeing returns on your investment.
For capital appreciation, the longer you choose to wait before seeing returns, the higher the level of returns you will see. If you sell your investment property after only a few years, you will likely see some level of growth, but not enough to make a serious profit on the sale.
By choosing instead to be patient and wait, you can benefit immensely from the long-term growth that you can see from property investment.