You may be a new investor, about to branch out and invest in your first property, or you might be an experienced investor with plenty of properties already under your belt. Either way, there are some really important things to know about investing.
First and foremost;
You don’t need to be a millionaire to invest in property.
Some people assume that to be able to benefit from investing in property you have to be able to put in a huge amount, whereas the reality is that there are plenty of ways around this. The key is to invest smart, not just large. You can look into a buy-to-let mortgage or partner up with other investors, or look at smaller investment opportunities; places such as Campbell House start at £49,000 with a guaranteed return in the first three years, giving you the peace of mind with your investment.
Secondly, never underestimate the importance of research. You want to make sure that you know every single detail of your investment. Decide if you’re more interested in student accommodation or residential buy-to-let, and then you can focus on finding the best location for whichever you choose. There is a big difference between these investments, so looking into both options and deciding which is more suitable for you is key.
Once you’ve decided what sort of investment you’d like to make, it’s time to find the best offer. Again, doing your research at this stage is critical. Different areas of England will have different average yields; for example, in the North West, the average student accommodation will give you a yield of 9%, whereas in London the average is 4.5%. Liverpool is an especially popular area, with the L1 postcode offering an impressive 10% average yield.
Knowing which area has the highest average will give you a good idea of where you’re going to get the best return from your investment, and will also let you know what to expect when you start looking. It’s always good to speak to someone who knows which areas are booming and which are giving less return, so if you’re looking to invest and want to talk it through, contact us at Urbane Brix today.