Buy to let investment is one of the most popular ways to boost your income, with the UK property market offering fantastic potential for first-time investors. When you take all the right steps, property investment can be a fulfilling venture that helps you meet your financial goals. When rushed into, however, you might be setting yourself up for disappointment. If you’re interested in making a property investment, make sure you take a look at these five top tips to ensure your buy to let venture is as successful as possible.
Research the best locations
When investing in property, there are certain areas in the UK that offer better potential than others. For instance, north-west based cities like Liverpool and Manchester have some of the strongest property markets of recent years. With increasing house prices, high rental yields, growing demand and strong capital growth, these two cities should be on every potential investor’s radar. London’s property market has been falling in comparison, highlighting the importance of sufficient research before choosing the location of your investment. Those investing in Liverpool or Manchester property should expect a lot of demand from young professional tenants as well as students, with both cities boasting a high student population thanks to the impressive universities on offer.
Get in your tenant’s mindset
One important thing to remember is that your investment property is for your tenant, not yourself. That’s why it’s so vital to try and get into the mindset of your potential tenant to ensure you’ll attract a consistent stream of demand. If you’re hoping to rent your property to students, for instance, make sure your student property is in a good location, close to the local university campuses and the city’s main attractions. Other features that appeal to today’s students include high-speed internet, stylish furnishings and communal areas for tenants to socialise with other students. Similarly, if you want to attract young professional tenants, you’ll want to buy a property with a modern, spacious design that’s in proximity to good transport links and the city centre. The more your property fits the requirements of your desired tenant group, the more people will be prepared to spend larger amounts on rental costs.
Choose the right company
Once you’ve decided where it is you want to invest and the type of property you want to invest in, it’s time to look for the perfect company to make your investment with. There are a number of signs that a property company is legitimate and can be trusted, such as a strong online presence, good reviews, and investment properties that offer the best opportunities in the strongest locations. RW invest is an example of a property investment company that ticks all the boxes, with a good track record of high-quality customer service and affordable properties with rental yields as high as 7 and 8%.
While the UK housing market can be strong in many areas, there’s still some levels of uncertainty and signs of instability in parts. While things are looking promising for many years to come, with north-west house prices expected to continually rise by 2022, it’s still important to always be prepared for changes. Patience and perseverance are some of the most important qualities for a property investor to have, especially when waiting for things like capital growth as it can often take some time for your property to increase in value as much as you’d like.
Finally, having the right organisational skills is key to a successful investment. This means really having your finances in order and being aware of any finance-related issues that could affect your investment such as taxes you’ll need to pay. Once you’ve purchased your property, be sure to keep track of your monthly outgoings and income. You never know when unexpected maintenance costs are going to arise, so it’s important to stay on top of your financial planning and leave room for any added costs. This way, if you get a dreaded phone call from your tenant complaining of a burst pipe or a broken boiler, you can rest assured that your finances won’t be negatively impacted.