Let us help you navigate the road to property investment success in just 6 steps:
Although it’s important to seek advice, it’s more important to do your own research before making any investment. Focus on what you want to achieve. Are you looking for a regular income or are you wanting to achieve the long term results produced by capital growth?
You also need to decide what type of property investment is right for you. A purpose built development or renovation? Student accommodation or residential?
Location, Location, Location
Location is key in deciding on a solid property investment.
Make sure to research the UK for up and coming areas. A good indicator is to see how much money is being spent in an area. Money spent on transport links, amenities and redevelopment will attract companies and people to the area – and these people will be looking for somewhere to live!
Think about the tenant
Buying a property for investment is very different from buying your own home. You need to think about the needs your potential tenant – not yourself. If you’re looking to target students, young professionals or families be sure that the location caters for their needs whether near to universities, transport links, places of work or schools.
Review your finances
Remember, this is an investment property so your head should always rule. Make sure to take a look at your finances to see what you really can afford. Don’t forget to take into consideration taxes and associated costs in your calculations. Advice from your accountant is vital in this regard as these can change over time, as can interest rates. The good news for property investors is that in times of rising interest rates you can normally expect to be able to increase the rent.
Hands on or hands off
Take time to consider what type of landlord you want to be – do you want to be directly involved or do you want to be completely hands off?
If you self-manage the property yourself you will be responsible for sourcing a tenant, conducting viewings and maintaining the property. This can be very time consuming, but will save you money if that’s your goal.
You also have the option to appoint a property management company. They will take all the hassle away and manage your property. They can help you with ongoing advice and even help manage your tenants so you can get the best possible value from your property. With the right support you’ll know when you should review rents and when you shouldn’t.
Work with a reliable sales agent
There are many property investment sales agents in the market. Some better than others. Make sure to do your due diligence as you will want to work with a reliable partner. Make sure you take a look at their past property projects. What successes have they had as a company.
Also look for a company who take care of the whole sales process. The world of property investment can be overwhelming if you’re new to it, so you want to be safe in the knowledge that they are there for you every step of the way – from sale all the way through to completion.
GURU top tip: It’s important to remember that property is a medium to long-term investment and you should not rely on property prices rising straight away. The longer you can afford to commit to a property the better. As the equity builds you can even consider purchasing a second investment property. Then you’ll be a real expert in Property investment!
Let Urbane Brix guide you into becoming a Property Investment expert.
Contact us today to explore your options.