Source: RW Invest
Buy to let property investment is one of the most lucrative ways to make the most out of your savings, and more and more people are now seeking out advice on getting into property investment. If you’re keen to learn how to become a property investor, these top tips for property investment are designed to prepare you for getting started on this profitable journey and give you the best knowledge and skills on how to invest in property as effectively as possible.
*1. Learn the Basic of UK Property Investment*
In recent years the buy to let market has taken a few knocks, with changing tax policies and potential price rises. However, the benefits of property investment far outweigh these. The demand from those interested in buying rental property in the UK is higher than ever before with a growing need for high-quality rental accommodation ensuring a steady stream of tenants. When it comes to investing in properties, considering the UK buy to let market is one of the most important property tips to find the best property investments in the UK for 2019, 2020, and beyond.
2. Choose Your Property Investment Strategy: Buy to Let vs Buy to Sell
With property investment, there are many different property investor strategies out there, with more common strategies like buy to let, and more niche strategies like rent to rent. The two main types of investment strategy – buy to let and buy to sell – tend to offer the best returns and are an all-round favored choice for investors. When it comes to investing in property for the most lucrative long-term returns, the most common strategy which comes to mind is buy to let, but it’s also a good idea to know about the alternative strategy, buy to sell, before getting started. This way, you can work out which option for buying an investment property suits you better.
3. Compare Residential vs Commercial Property Investment
Along with buy to let vs buy to sell as a property investment strategy, investors keen to explore all aspects involved with how to invest in property should also think about whether they wish to invest in residential or commercial property. While residential property is often the first option that comes to mind for many people investing in property, commercial property is another route which many investors consider as a way to gain a sizable rental income. In this section, we’ll look at some of the benefits and disadvantages of commercial property investment over residential buy to let.
4. Explore Different Property Investment Strategies
There are different property investment strategies to consider when you first get started with buy to let. Before considering all the steps involved with property investment, you first need to establish the best buy to let strategy for you and explore the different options. The most common types of buy to let are residential and student property investments, but there are some other types of strategy that you could follow. If you’re looking for the best ways to invest in real estate, here is a guide to rental property investment strategies that are important to explore when it comes to how to start investing in property.
5. Learn About the Rules of Investing in the UK Property Market
When investing in the UK property market, you need to adhere to certain rules and follow different legal requirements. One of the most common legal requirements involved with buy to let investment is that you’ll need to pay attention to tenancy laws when renting a property out to a tenant. This includes offering a tenancy agreement and keeping any tenant deposits in a protected tenancy deposit scheme. Other rules for buying an investment property include keeping up with any tax payments that are required, and deciding between a freehold or leasehold property purchase. We’ll cover buy to let taxes a little further on in this guide. To read about freehold vs leasehold, take a look at our in-depth guide.
6. Develop the Right Mindset
If you want to be an investor, there’s a certain mindset which you should have in order to pursue property investment as successfully as possible. Once you understand everything involved with being a property investor, you should make sure you develop the right kind of mindset. Here are some property investment tips on how to shape your mindset and become a more successful investor.
7. Know the Risks
Although getting started in property can be a rewarding venture and a fantastic way to reach your financial goals, there is still some risk involved. While not as high-risk as other investment strategies such as buying stocks and shares, getting started in property isn’t always a guaranteed road to success.
8. Start Small
As the saying goes, don’t run before you can walk. It’s important to view property investment as more of a journey rather than a race to success, and that’s why starting small is one of the best tips for investing in property. Beginner investors should take their time to research the market, consider their options, and seek professional advice before jumping headfirst into a new venture. Here are some of the ways investors should start out small with their property purchase.
9. Find the Best Property Investment Location in the UK
So you’ve chosen buy to let, but you’re still unsure on how to get into property investment? When investing in property, tips are important to look out for, and one of the most common property investing tips is to research your location. A smart investor only selects the best performing UK regions for buy to let developments, which tend to be in urban areas.
10. Understand your Tenants Profile: Student vs. Residential
Another significant factor that’s integral to answering the question of how to invest in property is identifying your target tenant. It is difficult to separate location and its occupants, as the two come very much hand in hand. Identifying the best investment property for your target tenant helps you get one step closer to a successful investment.