If you are thinking about investing in property, then there are some great opportunities out there. Property is one of the most popular assets and buy to let property can be a lucrative investment, with increasing property values and a consistent revenue stream earned from monthly rentals. Before you dive in, these useful tips for your first property investment should give you an idea of what to look out for.
Prepare and Plan
When you are looking at properties it is important to keep a clear head and look at all the information available to you. Investing in property requires careful attention to detail and planning. It is essential that you create a budget and work out how much you can afford to invest. If you are taking out a buy to let mortgage, then you need to make sure that you can cover the monthly payments. Research is one of the best skills you can learn as you move forward with property investment and investors who look to the future often make the best returns. Try and figure out how much your property will go up in value based on current trends, plans for regeneration in the area and what the demand is for property there.
Make sure you look in depth into the potential location of your investment property. Look at current property prices, rental rates and capital appreciation for your street and area. In terms of capital appreciation, it is important to see whether there is a ceiling price for the area and make sure you don’t pay over it. Choosing an area where there is lots of investment and regeneration is a good move as property prices should start to rise. Properties in the Northern Powerhouse are a great example of this, with prices in Liverpool increasing by 7.5% in a year, and Manchester by 6.8%. For your first investment, it is worth looking somewhere where prices are affordable, so there is plenty of room for price growth.
Be Aware of Tax and the Law
The UK is a great place to invest in property due to its investment-friendly policies. However, it is important to be aware of the legal considerations surrounding property investment and the tax implications. Stamp duty is an important consideration, as is tax earned on rental income. Make sure you factor these into your calculations too.
Listen to Advice
If you are just starting out in property investment it is essential that you are willing to listen and learn. Choosing to invest with a specialised property investment company like RW Invest is a great way to get insider information and purchase exclusive properties before anyone else. Don’t be afraid to listen to advice and be cautious when it comes to choosing your first investment property.
As a first investment, it’s important to start making some money from your property. The way you can do this is through receiving rental income from buy to let tenants. These funds can allow you to invest in other properties, cover costs and grow your portfolio. After you have done your research you should be aware of how much you can potentially charge your tenants for the property. Think about what your ideal tenants are like and what they expect from a property.
This is a collaborative post.