Investing in UK property can be highly lucrative, particularly if you’re building an extensive property portfolio. Many investors seek buy-to-let properties for sale, as this offers both rental income and long-term capital growth. Other investors choose to invest in ‘project’ properties, with a view to making improvements and selling for a profit.
If you’re thinking of investing in property in the UK, here’s the six key questions you should ask yourself beforehand.
The Six Questions to Ask Before Investing in UK Property
- Will you require regular income? If you will be using your investment property to generate a monthly income, renting to tenants is the way forward. Look for buy-to-let property for sale that offers good rental yield (a property investment agent will be able to provide you with advice on this). However, if you’re more interested in making a longer-term profit, consider buying a house at auction, particularly one that needs cosmetic or structural improvement. Property auctions generally offer savings of around 15% off market value.
- Have you got your finances in order? If you require a mortgage, you’ll need to arrange a specialist mortgage with your broker; and if you’re buying a house at auction, you’ll need to have the mortgage agreed in principle before bidding. You’ll also need to factor in other expenses too, such as insurance, improvements to the property and letting agent fees.
- What type of property do you want to invest in? There are many different options available. Buy-to-let property for sale, particularly HMOs, offer good rental yield. However, you may want to invest in a property for the purpose of selling on at a profit. You might prefer to purchase commercial property, or even an off-plan development. If you’re unsure where best to put your money, talk to a specialist property investment agent.
- What is your attitude to risk? Although property investment is considered fairly low-risk, there are risks involved. Indeed, some properties may have a higher risk profile than others. Always keep in mind how much you can afford to risk, to ensure you don’t experience financial problems if the worst should happen.
- How will you look after your property portfolio? Will you be managing your portfolio by yourself, or will you be working with an expert, who can assist with your investment? Also, who will be maintaining your properties? Letting agents can help with buy-to-let properties, but their services will incur a fee.
- Should you diversify? Diversifying your property portfolio can be advantageous. Some investors choose to diversify by location, others select different types of property in the same location. However, you may prefer to specialise in a particular area or property type, in order to generate expertise.
The Buy2Let Shop Limited
If you’re thinking of building a property portfolio and you’d like some advice, talk to The Buy2Let Shop. Our team of specialist property investment agents are here to help maximise the potential of your investment, and will assist you throughout the process. We also offer help with buying a house at auction, and hold regular property investment seminars, to boost your knowledge of property investment in the UK. To find out more, simply visit The Buy2Let Shop website today.