Thinking about starting in property investment? Although it initially may seem like a daunting task, property investment really doesn’t have to be that difficult. By researching the market, fully preparing yourself for every eventuality, and following numerous top tips, this will help you prepare for a successful property investment venture in the future.
One of the first and most crucial decisions you need to make before you start is deciding what property interests you. Don’t necessarily base your decision on what you believe will provide you with the most fruitful returns, but also consider what will work best for you in order to make it a real success. For example, refurbishing a property you are residing in, in order to sell for a profit at a later date would involve a completely different set of skills and knowledge than investing in an off-plan property. To keep things straight forward while you are still new to the market, investing in buy to let properties across the UK would be the best route to consider.
Buy to let refers to the purchase of a property with the intention of immediately letting it out to a tenant, instead of purchasing for personal use. The UK housing market is a perfect environment to secure some of the best returns, but this completely dependant on numerous factors like population, local amenities and location.
You have now decided on buy to let, but some areas are more lucrative than others. Research your location as smart investment properties are those located in an area with high tenant demand and those with ambitious regeneration schemes in surrounding areas. These factors have helped keep the property landscape competitive against poor performing areas in the south as northern locations, such as Liverpool, Leeds and Manchester, have far surpassed those postcodes found near the capital. If for example you take a look at these investment opportunities in Manchester, you’ll quickly get a feel for the lucrative investment options available across the city.
It is imperative that you understand your tenant profile, as this is going to be the make or break factor behind a successful property investment. Are you considering residential accommodation or student? You should think carefully about the pathway you choose and consider the pros and cons of each before you commit yourself to any form of investment. After you have decided upon your target tenant, you should keep this in mind when choosing a location, as the pair work hand in hand to create a solid investment proving strong rental returns.
Investing in UK property offers some of the most competitive rental returns assuring net yields as high as 11.79% in certain parts of the country. This is reflected by the high tenant demands, lack of available housing, and the sought-after locations, which are the most significant factors behind driving rental growth.
Above all else, performing thorough due diligence will give you the confidence that you have made a considered choice and that you have set yourself up for a successful future in property investment. As the property industry may experience changes, your investment will be strong enough to deal with any ebbs and flows within the market.