Are you thinking of investing in property in the UK? If so, you’re not alone. Exact figures aren’t known, but it’s thought that between 1.5 and 2 million people are landlords in the UK, with many of them choosing to develop extensive property portfolios. It’s a lucrative way to generate a monthly income, not to mention make profit through capital growth; and it’s considered less risky than other forms of investment.
However, getting started as a property investor can be daunting. Here are a few great tips to help you.
Questions to Ask Before Investing in UK Property
- Is it for you? Before you get started, it’s important to ascertain whether this type of investment is right for you. Investing in property is a fairly safe form of investment, but it’s not a get-rich-quick scheme. Even if you invest in areas where house prices are rocketing, it’ll still take a few years before you see good ROI in capital growth. Likewise, if you’re planning to be a landlord, you’ll need to ask yourself if you’re ready for that level of responsibility.
- Have you got the funds? If you’re planning on funding your purchase using a mortgage, be aware – you’ll still need a sizeable deposit, as buy-to-let mortgages require larger deposits than standard mortgages. If you’re investing in a buy-to-let property for sale, you’ll also need to have money set aside for improvements, insurance and maintenance – just to name a few.
- Do you know the market? Property investment requires specialist knowledge, and the only way to gain this is to do your research first. Talk to other investors and property investment agents – people who know the market inside-out and who are happy to offer their advice. Attend property investment seminars, so you can find out more about what’s involved. In short, seize every opportunity to improve your knowledge – it’ll help support your investment.
- Can you afford it if things go wrong? Investing in UK property is relatively low-risk. However, it’s not risk-free – and you’ll need to check that you’ll still be financially solvent if the worst should happen. For example, if you can’t find tenants to live in your property, will you still be able to afford the mortgage payments? Check your finances before you commit to buying.
- Do you have a strategy? It’s possible to make good money from owning just one investment property. However, if you want to generate a serious income, you’ll need to build a property portfolio. Remember, a property investment agent can help you to develop a comprehensive strategy.
- Do you know which area? Location can make or break your property investment. Buy in the right area, and you’ll enjoy a solid profit through rental yield and capital gains. Choose the wrong area, and you might even end up losing money. If you’re not sure, research the area thoroughly and find out how other rental properties are performing.
The Buy2Let Shop
The Buy2Let Shop are a team of specialist property investment agents in London, and we’re here to help you build a successful property portfolio. We’ve got a wide range of properties on our books, all competitively priced and not available to the general public.
We also offer assistance with buying a house at auction, and hold regular property investment seminars, designed to boost your knowledge of the market. To find out more, simply visit The Buy2Let Shop website today.