23 February 2016
23 February 2016,

Demand for rental property in the UK continues to be high – as house prices rise and increasing numbers of people are priced out of the sales market. Whilst this isn’t great news for the next generation looking to buy their first home, it’s excellent news for property investors seeking buy-to-let property for sale – as it means there’s likely to be plenty of tenants interested in your house or apartment.

However, whilst the buy-to-let market may be strong, that’s not to say that there aren’t some pitfalls to avoid. Here’s five of the most common property investment (UK) mistakes – and how to steer clear of them!

Five Big Property Investment Mistakes

  1. Following your heart, not your head. When viewing investment properties for sale, it’s easy to get emotionally involved in the purchase; particularly if the house has been decorated to a high standard, or has some attractive period features. However, remember that you’re not buying it for yourself, you’re buying it purely to rent out to others. Keep a cool head, and you’re less likely to pay over-the-odds for a property.


  1. Not shopping around. Savvy property investors know that there are plenty of excellent bargain houses for sale – but not necessarily in the estate agents’ windows! Buying a house at auction, for example, allows buyers to grab homes with excellent potential – often at a greatly reduced price. Likewise, working with property investment agents (in London or across the country) ensures you gain access to houses and flats not currently on the general market.


  1. Failing to do your homework. If you’re serious about developing a property portfolio, it’s imperative that you develop in-depth understanding of the market. Read up on property investment in the newspapers and online. Even better, take part in a property investment seminar, and talk to as many industry experts as possible. The better educated you are in the field, the more likely you are to make a solid return.


  1. Not factoring in all the costs. Whilst it’s possible to make an excellent return when renting property, you’ll only manage to make good money if you appreciate all the costs involved. Remember to factor in the costs of updating and improving the property, mortgaging and insuring it, plus paying utilities bills and council tax. You may also need to pay a letting agent to manage it on your behalf.


  1. Buying in the wrong area. Before investing in property in the UK, it’s important to identify the areas that will bring you the best returns. Look for upcoming cities and towns; areas that are well-served by good schools, great transport links and local amenities. Think about what would appeal to your prospective tenants, and buy accordingly. If in doubt, talk to a property investment agent – don’t leave it to chance!


The Buy2Let Shop Limited

Are you looking for property investment opportunities? If you are, but aren’t sure where to start, The Buy2Let Shop can help. We’re specialist property investment agents in London, and we have a wide range of properties on our books which aren’t available to the public. We can also assist with property auctions in the UK, plus offer regular property seminars in London, to bring your knowledge up to speed.

To find out more, simply visit our site today.

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