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Top 5 Tips for Getting Started in Property Investment

Top 5 Tips for Getting Started in Property Investment

Top 5 Tips for Getting Started in Property Investment

So, you’re thinking of investing in property.

Looking for a way to maximise your income, save for retirement, and even launch a new business? Then well done! – going down this route is probably one of your best options. 

As successful as property investment can be, however, there are things you need to consider before you’re on your way to becoming a full-fledged property investor.

Check out these property investment tips below to help speed up the process!

  1. Research is Key

Of course, as with any new venture, you need to know what you’re getting into.

Property investment is no different and perhaps, considering the level of risk, makes proper preparation even more essential.

The best way to minimise the risk of your investment being affected by unfavourable market fluctuations is to research the market in detail.  

Purchasing a property in a UK property hotspot will reduce the likelihood of a risky investment. 

You should also think about whether any regeneration is set to happen in the area surrounding the property, as this could further boost growth. 

  1. Find the Best Location

Regeneration, specifically, is usually a great indicator that an area is an attractive asset for investors.

Buying in an ‘up-and-coming’ location before most other people notice also can potentially enhance profit yield massively.

Nothing makes a spot more lucrative than population growth, and, as stated, regeneration helps massively in this department. Projects that will improve local infrastructure and transport are usually an indication that a location has the potential to become an investment hotspot.

  1. Explore Different Strategies

One of the main things to wrap your head around is the difference between the two main strategies: buy-to-let and buy-to-sell.

Buy-to-let properties are those bought with the intention of renting out to tenants, providing a monthly rental income and steady returns over a long period.

With buy-to-sell, an investor purchases a property to sell for an increased price. They then set about refurbishing and adding various improvements to the property to, essentially, make it more eye-catching for potential buyers.

Typically, this can provide a substantial one-off cash payment, so long as an investor makes the right improvements to increase the property’s value and whether they can secure a buyer once ready to sell.

  1. Figure Out What Kind of Investor You Want to Be

A full-time landlord can own and manage rental properties as a primary source of income; however, if you don’t want to give up the day job, it is possible to profit from property investment without abandoning your career.

Once you determine what kind of investor you want to be, you can figure out whether you need to hire a property management company to assist with investments.

These companies can manage a property portfolio so that investors don’t need to worry about finding a tenant – it’s all left in their hands.  

Property management companies can also respond to tenants’ issues, removing the need for an investor to be contacted directly.

This often proves to be a relatively hassle-free approach and is perfect for those who want to take a step back from the time-consuming day-to-day duties and demands of owning a rental property.

It’s all about whatever best fits your lifestyle, so, again, spend some time figuring out what works for you!

  1. Create a workable budget – and don’t dodge taxes!

It may come as a shock, but with property investment (and most things in life), you can’t just improvise as you go along.

It is essential to develop an extensive budget plan before you even look at investing in a property.

After all, you can’t know what to get if you don’t have a price sorted.

Having a budget in place beforehand means you can find the best possible property for the best possible price.

You don’t want to pay above your means for a property that might have the same potential as a property with a lower price.

And most importantly, always ensure that you factor in additional costs like taxes into your budget.

So, there you have it.

Now you know some of the basics of property investment.

Before you can become a card-carrying member of the investor clubhouse, though, it is vital to point out that these are just the basic starting-out points – in order to be successful in this area, you need to ensure you’re up to date with the latest trends, strategies and techniques.

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Top 5 Tips for Getting Started in Property Investment

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