Top Tips For First-Time Property Investors In UK
Demand for rental property remains strong in the UK, and while yields have fallen due to political uncertainty, there is still money to be made in the buy-to-let sector. Estate experts insist there are reasons to be optimistic about the future of buy-to-let.
So, if you're considering a possibility of becoming a landlord, then take a look at this list of tips for first-time property investors from Neil Robinson, the owner of MileInvest, and a property investor of more than 20 years.
- The best Property Investment opportunities aren’t always on Rightmove
A lot of the best deals are often kept off the property portals for varying reasons. A sale might need to be achieved discreetly so that current tenants aren’t needlessly disturbed or worried; there could be several agents involved so multiple portal listings just look desperate. Also, investors like deals that are a little more “exclusive” and not open to everyone. A good Investment Property Consultant is often well connected and can seek out the right deals for committed buyers.
- There isn’t “a property market”
Rather, there are lots of them. There’s a lot of talk of the UK property market, but each city, town and village have their own cycles, types of property and types of end user. Manchester & Liverpool, whilst both great North West cities, have different price points, yields, maturity levels and plus points. What is applicable in one, may not be applicable in the other.
- There isn’t only one strategy
Before you go on your property investment journey, even before we talk about budget and where you’d like to invest, we need to talk about what you aim to get out of your property investment. Where a high yield may be important to one, capital growth may be preferable to another. Some like to be hands on, whereas others simply want to put up the cash and see more cash in return, whilst someone else does the legwork. Some view property investment as a job, others view it as preparation for their retirement. Make a plan with your Investment Property Consultant, and work with them to make it real.
- Know your budget
Work out what you can afford to - or are prepared to - invest and how you’re going to access that money. And whilst this sounds obvious, do be honest with your agents about what your budget is, so they can be as realistic as possible in finding the right investment opportunities for you.
- Know your Risk Attitude
In general, Property Investment is safe. Buying an existing property with a rental track record is unlikely to result in you losing all your money, and the longer you own the property, the higher the likelihood of you ending up with a valuable, unencumbered asset. Like any investment though, the safest investments aren’t the highest yielding - those that do offer better yields can have more risk attached, or can be more time consuming to manage
- It’s not an emotional decision!
Many people approach buying Investment Property in the same way they would approach buying their own home. Remember, you’re doing this for business reasons, so you can’t get too emotionally caught up in this. Doing the figures and having confidence in the property’s suitability for purpose and eventual resale potential, is a much better yardstick than asking yourself if you would like to live there.