Guidelines for your Investment Strategy

First of all we need to decide whether we are looking at earning an income from either letting the property or from capital growth or possibly both. The next factor in your investment is what is your comfort level around your risk investment. This is a little more complicated to factor as you have to decide the risks around either growth or rental. The risk needs to include the external factors discussed in the previous article. Of course if you have a large financial buffer such as savings are much disposable income you will probably feel that you can afford to take a greater risk. Included in your strategy you will also consider how long you want to invest for. Purpose you want to get on the initial surge and bubble of new niche investment opportunity and make a quick short term investment and then get out. Alternatively you may decide to investment long term. In both cases you need to look at your exit strategy. What are your costs in exiting out of your investment and how easy will this be. Could you suffer a great financial loss if you exit early.