Investing in UK property can be incredibly lucrative, as many landlords will testify. Find the right buy-to-let property for sale, and you’ll not only enjoy a solid monthly income from rent, you’ll also (hopefully) make money from capital growth over the years. Build an extensive property portfolio, and you’re likely to generate a full-time salary, leaving you free to spend your time as you wish.
However, investing in UK property is something of an art form, and you’ll need to know your stuff before diving in! Attending a property seminar is a great way to brush up on your knowledge, as is working with a property investment agent. In the meantime, here are 10 useful tips to get you started.
10 Ways to Master UK Property Investment
- Gain understanding of the market. It’s important to not only know how properties are performing at present, but understand how they’ve been performing over the last few years. It’s also a good idea to forecast into the future, predicting how much profit can potentially be made from the purchase. A property investment agent can help you with this.
- Don’t rush. When you’re starting out in UK property investment, the temptation is to get stuck in straight away. However, hasty purchases often result in problems further down the line. Take your time to identify the right property, at the right price.
- Always focus on adding value. You may adore that pied a terre in London, but if there’s no profit to be made from it, there’s no point buying it. Look for houses or apartments that are on at a good price, and which can be improved to offer profit in the future. Additionally, you’ll need to work out potential rental yield, and how much you can make per month. Always think in business terms!
- Don’t be snobbish. Instead of focusing your search on established, popular areas, explore locations that aren’t so well regarded. If the area is due to be regenerated, these shabby, unappealing places may be the property hotspots of the future.
- Purchase cleverly. The low mortgage interest rates are offering property investors a lot of exciting options at present. For example, if you had £100,000 to invest, you could purchase four apartments at £100,000 each, by putting down a £25,000 deposit and funding the rest with a mortgage. In an upcoming area with plenty of tenant interest, this could soon drum up serious ROI.
- Cash in on the ‘Waitrose’ effect. Amazingly, whenever a new Waitrose is built, the surrounding properties seem to go up in value. The same often happens when other amenities, restaurants or leisure facilities are constructed – it’s worth finding out what the local plans are for the area.
- Buy at a property auction. Buying a house at auction is a really savvy way to save money on your purchase. On average, most buyers save around 15% off market value.
- Target high-paying tenants. Young professionals tend to be happiest to pay the highest rental rates – but they’ll expect good quality accommodation in return (and rightly so). However, they often offer the best yields, making it a worthwhile investment.
- Apartments for better returns. There’s no hard-and-fast rule, but generally speaking, two bedroomed apartments offer the best ROI. They’re certainly a great place to start if you’re new to UK property investment.
- Property investment agents. Property investment agents often have houses and apartments on their books which aren’t available to the general public, and which are priced competitively to sell. They’ll also offer you guidance and support throughout the process, helping you maximise on profit.
The Buy2Let Shop Limited
If you’re interested in finding property investment opportunities, speak to The Buy2Let Shop team. Our professional property investment agents are here to help you find the perfect properties for your portfolio, at a price that works with your budget. To find out more, visit The Buy2Let Shop website today.