Whether you’re an experienced investor with multiple properties in your portfolio or a first-time buyer looking into an investment, it’s easy to become interested in the UK property market. A key aspect of this market is investing in property. Since becoming popular, property investment is quickly becoming a preferred way to save for retirement, earn a second income, and become financially independent.
More people are now seeking out advice on how to be successful as a UK property investor, whether they reside in the country or are considering investing from overseas. Since the investment industry can be a complex and confusing concept to wrap your head around, we’ve put together a list of the top tips to do before you can expect to be a successful UK property investor.
No journey is easy, especially that which involves investing in property and making profitable returns. However, the reality is that if you know what you’re doing and you have the relevant experience going into property investment, you’re sure to reap the rewards within no time. Be sure to plan at least three to six months in advance, so you know what is happening and can expect the unexpected.
Are you interested in finding out exclusive tips on how to make a success out of your property investment? Below are some advice and tips to help you get started!
Having a clear goal in mind is key to staying focused and making the most out of your property investment. The research will tell you that having a clear head and walking before starting to run is the most efficient property investment strategy out there. Being focused can become a superpower if utilised correctly! Going into the investment world clued up will ensure you’re ready for success. There will be times in which it’s more difficult to stay focused but ensuring you have your end goal in mind will keep you powering through.
Discover the Best Places for Returns
In the UK, certain areas are better to invest compared to others. According to RWinvest’s Buy to Let guide, Liverpool and Manchester are the top cities to invest your money if you want highly profitable returns. If you’re wondering how to make money from property, then you’re going to need to know the best locations for returns. Aiming for high rental yields is a great place start, the average rental yield in Liverpool is around 10% (which is above national average), but in the likes of London, you’ll be lucky to get 4%. The rental yield is the percentage you will get returned on your investment.
Also, consider the type of property you’re purchasing and what sort of area will be best for this property. If you’re investing in a studio apartment for a student, then near a university campus will be the best place to invest and get returns as students will be looking in this area. On the other hand, a 3-bed semi-detached house ready for a family will do better in the suburbs, perhaps close to retail outlets.
Explore Investment Strategies
There are two main investment strategies to consider before investing in property. Depending on your lifestyle, you will want to decide according to what suits you best. Hands-off property investment is when you’re a passive angel investor in that you are more of a bystander than actively involved with the investment and gaining returns. This style of investment suits people who have careers, their own business, or someone who wants to make money through a passive income on the side but doesn’t want the hassle of managing a property.
However, a hands-on property investment strategy is when you’re involved in acquiring tenants and are essentially a landlord for your investment. This type of investment is more of a job that you do full-time rather than something that earns you money but doesn’t take any time and effort. We’d only recommend this strategy if you have multiple properties or can find the time to liaise with tenants and help them out with any issues.