01634 629 888

Investment Guide

Should you invest in Property?

“How to be a good investor in property” is a question that is frequently asked when considering whether or not to invest in property.

We have some of the finest tips for first-time property investors and some excellent advice to get you to think about your new venture. If you wonder what to look for when buying an investment property, or even how to begin purchasing investment properties

How to become a successful investor in property

At some stage, you’ve likely heard from some self-professed property specialist statements like “property is a guaranteed investment” or that “property is a fast way to make cash.”

You undoubtedly saw the instant attraction of being a profitable property investor and quickly wondered when and how to begin purchasing your own investment property. Before you begin planning your portfolio, however, the true issue will always be for any budding property investor.

Do you need to invest in property?

First and foremost –and like most things in life –when it comes to investing in property, there are totally no guarantees. Moreover, there is definitely no such thing as an investment that is fool proof. Even if, like all business ventures, you obey every rule in the book, one of the biggest tips we can give at this point is to forget all you believe you understand.

Property is certainly not an alternative to get-rich-quick and you often need some collateral to get your investment off the ground Just ask the first-time buyer to save the deposit and try to take that vital step on the ladder. It’s essential that original collateral. If you want to buy an investment property seriously and are ready to spend cash to make cash.

What to look for when purchasing a property for investment.

You are planning to purchase a property, but what next? You will need the suitable buy-to-let mortgage if you go down the buy-to-let path. Will you be a hands-on landlord and the beck-and-call of your tenant 24/7 if the house is in trouble? If not, are you ready to seek a letting agency’s guidance and knowledge to handle and pay for the property on your behalf? If your undertaking is vacant for months at a moment and otherwise faces repossession of your investment, can you also afford to pay a second mortgage?

 

Another option could be a renovation project whereby you buy a run-down property and offer it a significant facelift to upgrade and update it. This can be a excellent option if you are willing to stay in the property during the renovation. You are also more likely to invest in better quality fixtures and furniture to boost your property’s value as you intend to live in it after the original renovation.

The years pass before you understand it, and you are prepared to sell. Hopefully the housing market has continued to grow, and you’ve earned cash from your house just by living there. Keep in mind that the method can be lengthy and costly – Not to mention, you might be living on a building site at the beginning for months on end and this is no way to make cash quickly.

When investing in property, there will always be loads of stuff to consider. If you are not fortunate enough to have lots of disposable cash, then money is going to be a large factor in determining how stressful this undertaking will be.

Why are you investing?

Despite latest political uncertainty and reports of a fall in house prices, property investment is still one of the best ways to get your cash to work for you. The market saw an annual increase of 3.1 percent on the average UK home cost, according to a study by Gov.uk in July 2018. That’s £ 231,422. Annual home prices grew to 3.2 percent the previous month and then up to 3.5 percent the next month, making £ 232,554 in September 2018 the average UK property.

One of the advantages of property as an investment is that it feels more tangible than saying the inventory market or even placing it in your retirement pot. While all kinds of investment have their advantages and disadvantages, many choose to invest in property as investors can hand over their assets and act quicker to rectify their pensions or stocks than they can.

All this being said, with wide uncertainties becoming more evident and worth considering about what the future holds for property investment and home prices in the coming months.

What to look for when buying a house for investment

Knowing what to look for or in an investment property extends beyond the checklist of our buyer, here. Talking to a financial specialist would be a nice beginning. Next, to help you navigate the best deals and provides, you’ll want to discover a mortgage advisor or mortgage broker.

Once you have a budget idea and what’s affordable, it’s time to hit the road and discover the investment you dream of. Go to a property agent – discovering the right property will prove invaluable to their skills and professional knowledge.

First time property investor

Now that you are serious about what to look for when buying an investment house, here are some first-time tips for investors in properties.

Buy to let

Always put the tenant first – like in a restaurant or shop, you will ultimately provide a service. Happy, long-lasting tenants in your first venture will be the key to success.

This is because you are considerate in getting back to them and correcting their problems, and down to how the property was decorated. Even the most spendthrift tenant is going to turn their nose up at a landlord who’s done a poor renovation – it informs potential tenants you’re prepared to cut corners and not professional.

First Time Property Investor Tips

Flats vs houses

Generally speaking, apartments or apartments create better buy-to-let investments – particularly if they are a two-bedroom property with two bathrooms as they are considered to be more flexible and convenient for the renter. The maintenance tends to be less on apartments and tends to be found in more desirable places such as city centres or close to excellent transport connections. That said, individuals love an outdoor area, so look for flats with balconies. If you want an even more attractive property that retains its significance, or access to a garden.

Patience is key

Be patient and prepare to play the lengthy game – property can be a sound investment, but it’s definitely not a fast fix. Particularly in terms of buy-to-let. You’ll want to commit for about a 5-10-year period to see a good return.

Look to increase value of the property

Whenever necessary, try to add value to your property. Can the master bedroom, for instance, provide an en-suite bathroom? Is there space for another bedroom’s loft conversion? Could the kitchen do with a facelift and does the front garden make for a nice driveway.

Area

Location-location-location! It’s not what you’re buying, but where you’re buying, and we advise you to stay there. You instinctively understand the market better than you believe, and when it comes to understanding the healthy areas and the less desirable ones, your local understanding of the region will be invaluable. You will also be familiar with the colleges and transport connections that make prospective tenants excellent selling points.

In addition, while upcoming cities or towns create good investment property locations, don’t ignore the suburbs. Towns with a M&S tend to increase rental rates as they are considered to be more high-end and excellent rail connections will always be a draw for professionals hoping to cut down on the price of shuttle fares and save precious time on their daily travel. Areas close to fresh developments in housing also indicate that the region will have some long-term development and investment in the region.

Evaluate if you should invest in property

Ultimately, property investment is about the figures and you have to decide whether to chase short-term returns or long-term capital growth. Whatever your objective, you would be wise to set yourself a budget and draw up an action plan with achievable objectives that can be accomplished in a timely manner as they will assist you to maintain track.

You will also have to separate yourself from the process mentally and believe with your head and not your heart. There will, of course, be some things where you need to depend on your instinct, but always attempt to take it back to the facts and figures on your scheme.