DAG Investments

DAG Investments Dag Investments is a Property Investment Company that helps people reach their Financial Ambitions. We provide a completely hands-free investment service.

Stewart, Director at Dag Investments, based in Midlothian, Scotland. Dag Investments is a property trading business that specialises in building Buy-To-Let portfolios for those who don't have the time, energy or skillset to do so. If you'd like to find out more, send us a message or head to our website to get your free investor guide. You can also book an initial consultation call and take the first step to becoming a property investor.

What does 'Hands-Free Investment' actually mean?It is a way in which you can invest in property no matter how much exper...
31/08/2023

What does 'Hands-Free Investment' actually mean?

It is a way in which you can invest in property no matter how much experience you have.

At Dag Investments we use our specialist knowledge / skills / network to ensure you get the best possible property investment suitable to your needs / market conditions / location.

If you'd like to find out more then message us or head to our website and book your free initial consultation, you can also download your own investor guide to provide more information.

Why are new developments important when selecting suitable investment areas?Well, let me tell you:▪️Most people think si...
11/08/2023

Why are new developments important when selecting suitable investment areas?

Well, let me tell you:

▪️Most people think simple economics...
Supply ⬆️ with more houses in the area,
Demand ➡️ remaining the same,
One would expect house prices to fall ⬇️.
However, this is typically not the case.
An injection of brand new 2 / 3 / 4 / 5 bed properties will sell for higher price than existing stock in an area, raising the ceiling price of the area, and in turn raising the average house price.

▪️Higher demand for similar properties. There is usually high demand for new build properties, if a buyer is unsuccessful in the purchase of a new build, they often look to other similar properties in the area.

▪️Increased spend within the local economy. Depending on the development size, construction can often take several years which sometimes results in the developer maintaining stakeholder relationships by injecting cash into the local economy.

▪️An increased local population. This is often part of a larger council development plan which focuses on creating more jobs in an area, increasing the size of local economy which attracts further investment, making the area a more desirable place to work and live, increasing the demand for property, and therefore increasing house prices.

As you can see from the points above, you can understand why new developments can be a key decider when selecting suitable investment areas.

At Dag Investments we carry out due diligence in all of our investment areas considering many factors to ensure there is strong capital growth potential and high rental demand for now and many years into the future.

(Photo is an ongoing development within Mayfield, Midlothian, which recently started construction)

28/07/2023

Lets talk about interest rates...

If you consume any of the mainstream media, then you would be led to believe that high interest rates are destroying the property market and that a crash is imminent with a massive doom and gloom outlook on property investing!

What is your opinion, Good or Bad?

I always think - 'If in doubt, Zoom out'.

▪️Over the last 1000 years there has never been a 10 year period where property has decreased in value...yes the market will always rise and fall just like there will always been periods of growth and recession within the economy. I believe you should focus on time 'in the market' and stop trying to 'time the market'.

▪️If a 'property market crash' is on the horizon as we are led to believe by mainstream media, then why is it that major banks such as Lloyds are still investing in property right now? It is because they understand the power of property investment with a long term investment mindset.

▪️Higher mortgage rates are resulting in many landlords unable to cover their repayments with rental income, resulting in them having to sell. Without meaning any disrespect, many of these landlords are 'accidental landlords' where they typically rent out a second home and do not have investment mindsets. It is important not to over-leverage the property (the reason why BTL mortgages have 25% minimum deposit) and ensure rental coverage is sufficient. This is something we factor in to all our investments.

▪️Higher interest rates typically results in buyers holding back until rates drop. This causes a reduction in demand for property and may well result in a slight drop in property prices (good time to buy for investors). However, as unfortunate as it may be, typically more people are remaining in the rental market which means higher demand for rent, and therefore higher rental prices. Meaning as a property investor what you may 'loose' in short term property value, you make back from increased rental income.

Now of course interest rates are an important factor within property investing, however I just feel it is important to understand that it can still be a great time to invest as more buying opportunities arise.

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Dalkeith

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