If you’re considering diversifying your investment portfolio, or if you’re simply looking for a way to generate some additional income, you may be wondering how to invest in property. Becoming a property investor is never easy, but it can be very lucrative as long as you get the right professional guidance and support. With this in mind, here’s our beginner’s guide to property investment.
Financing The Investment
The first step in your property investment strategy is to decide how the investment will be financed. Keep in mind all the aspects of the purchase from current property prices to Stamp Duty and solicitor’s fees. Do you need to obtain a buy-to-let mortgage or are you a cash buyer? All these things will have an implication on the type of property you’ll be able to buy as well as the area in which you’ll be able to afford to purchase.
Choosing A Suitable Property
Once you know how your property investment will be financed, the next step is to find the right property to invest in. You need to not only decide on the right location, but also the right type of property. This involves researching the average rental yields in your chosen area, the kind of tenants interested in renting a property within that location, and whether you’re keen to buy a house, flat, studio, holiday let, or HMO.
Identifying Ideal Tenants
Having target tenants in mind when you invest in property is extremely helpful. That will enable you to select the most appropriate type of property for your chosen market. A city center studio flat won’t appeal to families, but it could be ideal for professional singles or couples. A bungalow in the suburbs may not be ideal for students, but it could be perfect for downsizing retirees.
Seeking Opportunities for Added Value
The property market in the UK is constantly fluctuating, but the growth in house prices is a primary reason for property investment. After all, you want to be sure you’ll make a decent profit when you sell your property. Adding value is the best way to ensure this, so look ahead when choosing the most appropriate property to invest in. Is there potential for renovation or refurbishment? Is the location up-and-coming? These are key considerations to keep in mind.
Some prospective property investors are keen to take a hands-on approach and want to manage every aspect themselves, from selecting a property to renovating it. However, not every potential landlord is keen to take on so much responsibility.
Thomas Henry Property Investments is on hand to offer a hands-off approach for first-time property investors. Thanks to our extensive experience in the field, we can offer expert advice and guidance, and can handle every step of the investment process, from sourcing the most suitable property in your chosen area to undertaking all renovation and refurbishment works to maximize your overall investment potential. Don’t hesitate to get in touch today to find out more.