There’s no doubt about it, UK property investment remains one of the most reliable, lucrative forms of investment around. However, like any other type of investment, it’s important to do it right, or miss out on making good ROI.
If you’re new to investing in UK property, and you’re not sure where to get started, here are five important things to keep in mind before you commence.
The Five Most Important Things to Know Before Investing
- Location really is everything. You may well spot the perfect property, with amazing kerb appeal, plenty of lettable bedrooms, and immaculate décor to boot. However, if it’s not in the right location, you won’t ever achieve a high ROI, nor will you generate the best rental yield per month. Tenants value a great location above all else – a pleasant property, though desirable, is very much of secondary importance.
- Don’t bite off more than you can chew. When buying a house at auction, you’re likely to see plenty of bargain properties, all of them requiring a level of work to bring them to standard. Whilst there’s serious money to be made from ‘doer-uppers’, it’s not worth taking on a job that’s too big for you. All it’ll result in is a major headache for you, plus the stress of remaining in budget and not eating into your profits. Our advice? Start easy, then work your way into the more challenging projects.
- Do the maths. UK property investment is a business, and as such, profit should always be your main focus. When viewing buy-to-let property for sale, work out how much it’ll cost you in total – this includes mortgage costs, legal fees, insurance, plus any expenditure you’ll make to get it to standard. Then, get a realistic idea of how much you can generate from rental payment and capital growth. If you’re not sure, ask a property investment agent to help you.
- Seek help wherever possible. When you make a start investing in UK property, you’ll probably feel a little ‘green’. That’s why it’s so important to take whatever support and guidance is available to you. Attend free property investment seminars. Talk to fellow landlords. Read as many relevant publications as possible. In short, immerse yourself into the industry, as this knowledge will increase your chances of enjoying investment success.
Don’t rush in. It’s tempting to hurtle headlong into an investment, particularly if you’re keen to get started. However, investing in a buy-to-let property for sale should never be a rushed process. Take your time to view as many houses and apartments as possible, and carefully weigh up the advantages (and disadvantages) of all of them. If none of them are right, it might be a wise move to wait until a suitable property comes to the market.