The buy-to-let market is still thriving in the UK. Areas such as Manchester, Southampton and Yorkshire offer investment properties for sale at relatively low prices, yet rental yield is fairly high – which means there’s plenty of opportunity to make a good profit.
As a result, many landlords look beyond buying just one buy-to-let property, and consider expanding their portfolio. With some savvy investment, plus wise management, a property portfolio can greatly increase returns – creating a sizeable income.
The Buy2Let Shop have created a quick guide, explaining how to start making a profit from property investment in the UK.
Building a Property Portfolio – Where to Start?
With average returns of between 5-7% per property, it’s no wonder that investing in property (UK) to build a portfolio is an attractive option. However, knowing how to approach the task can be daunting.
1) Understand the financial implications. Buying a property to let is rather different to buying a home for your family. Mortgage arrangement fees, for example, are higher. Stamp duty is about to rise on buy-to-let properties, which is an additional cost to be aware of. You’ll also need to pay legal fees, survey costs and valuations – not to mention hire a letting agent to manage your property on your behalf. However, don’t be deterred – many landlords find that the excellent returns make it worth it!
2) Select target areas. Certain parts of the country will be more lucrative than others. Investment properties in London, for example, still produce the highest rents – however, you’ll pay considerably more when you purchase the property. Think practically about where you’ll focus your property search. Having investment properties scattered across the country, for example, may make managing your portfolio rather challenging.
3) Source your properties. Properties are either available on-market (through an estate agent) or off-market (directly from a vendor). If you want access to properties that are off-market, it’s advisable to work with property investment agents (London-based or further afield) who will be able to share these exclusive property details with you.
4) Seek a bargain. In order to make a profit, the property needs to be purchased at a competitive price. Often, houses in need of cosmetic or structural work offer great returns – though remember to factor in the costs of bringing them to the required standard. Buying a house at auction is another effective way of locating bargain properties.
5) Make your intentions known. Make sure that estate agents know you’re actively seeking to invest in buy-to-let property. It’s not enough to be put on the mailing list – ask them to actively send over property details the moment the vendor agrees to work with the agency! This will ensure you get to see them before anyone else does.
6) Understand the market. If you have no experience in property investment, take the time to do some research. Speak to fellow investors and pick up tips. Attend property seminars to find out more about the process. Be as proactive as you can in bringing your knowledge up to speed.
The Buy2Let Shop Limited
If you want to find out more about property investment (UK), then get in touch with The Buy2Let Shop in Bromley today. We’ll put you in touch with highly motivated sellers, who have properties not currently on the market; and we’ll work with you to get the right property, at a good price.
To find out more about our services and The Buy2Let Shop reviews by our clients, simply visit The Buy2Let Shop website today.