Thinking of investing in property in the UK? Building a property portfolio is a popular option with investors, not least because it’s often a more secure way of investing than stocks and shares. However, developing a profitable portfolio requires a level of skill and knowledge – and it’s important to do your homework before you get started.
If you’re tempted by the prospect of property investment in the UK, and you’d like to learn more, this article will help you to develop a successful strategy.
Important Questions to Ask Before Investing in Property in the UK
- ‘Do I understand the costs involved?’ Purchasing a property generally involves more expenditure than simply paying the asking price. You may need to fund the purchase with a mortgage, which will incur fees. When purchasing buy-to-let property for sale, you’ll have to pay a higher level of stamp duty tax. You will probably also need a survey done on the house, not to mention insurance. Make sure you know exactly what you’ll be paying before you commit.
- ‘Am I in it for the long-term?’ Generally speaking, the property investors that make serious money are those who have a long-term strategy in place. Initially, you won’t see much return on your investment. However, a few years down the line, you should start to notice that your purchase is making money for you – both in rental yield and in capital growth.
- ‘How will I finance my purchase?’ Will you need a mortgage, or will you be using your own savings? Do you have any relatives who could help you with your purchase, such as parents? If so, will you need to pay them back; and how long will they give you to do so? In addition to this, make sure you examine both the best-case scenarios (if your investment performs really well) and worst-case scenarios. Can you cope financially if something goes wrong?
- ‘How will my investment make money for me?’ How will your property earn a good return for you? Will you be renting it out? If so, who do you intend to rent to, and what is the average rental yield you can expect? Alternatively, you may want to develop the property and sell it on at an increased price, or let the house as a holiday home.
- ‘Where can I look to find the best bargains?’ Here’s where some insider knowledge comes in useful. Attend property seminars to improve your knowledge of the industry – as this will provide you with the information you need to invest wisely. Explore the option of buying a house at auction, which is often considerably cheaper; thus offering better returns. Also, make sure you work with a specialist property investment agent, as they’ll have properties on their books that aren’t available on the general market.
Should You be Investing in Property in the UK?
Ultimately, deciding whether or not to build a property portfolio is a decision that only you can make. However, if you’ve got the necessary finances to start building a property empire, it’s certainly a lucrative, reliable way to generate great return on your investment.
If you’d like to find out more about property investment in the UK, get in touch with The Buy2Let Shop team. We’re property investment agents in London, and we offer a range of services designed to support your investment plans – including assistance buying a house at auction, plus regular property seminars to boost your knowledge.
To find out more about us, simply visit The Buy2Let Shop site today.