In spite of the recent tax crack-down on buy-to-let investments, many still see property as a very attractive investment opportunity, with good returns to be had with just a little know-how.
However, taking those first few baby steps into property investment can be nerve-wracking, particularly if you’re completely new to the business, and as with anything involving large sums of money, consulting a team of experts like Progressive Lets, before diving in is not only sensible but essential.
And with that in mind, we’d like to share with you 6 of our top tips for first time property investment success.
1. Arm yourself with the right Property Strategy
This is the part of the process where you decide what kind of investor you’re going to be. High risk or low risk? How much deposit will you put down in order to yield the best returns? How many properties will you invest in? How many will you keep and rent and how many will you sell? Have you considered Serviced Properties?
The answers to these questions will form your strategy and sticking to your strategy means you’re less likely to make silly mistakes
2. Research your Area
Knowing the area you’re planning to invest in could make the difference between success and failure. Things to consider include:
3. Use your Head
Remember; you’re not buying this property to live in – it’s an investment! Therefore, you must remember to think with your head and not your heart. This means investing in property that will attract your target market; if that’s young professionals that means good transport links, bars and restaurants and property should be clean, smart and modern. This may be a world away from the kind of property you like but if it yields a good return then that’s beside the point.
4. Location Location Location
Local investment is a strategy that works for tens of thousands of landlords over the country but travelling a little further afield could be better in terms of maximising your returns. If you’re an investor with an agent looking after your property, there really are no limits to where your property can be invested. Up and coming areas in Manchester and Liverpool offer some real opportunities.
5. Consider what Buyers and Tenants want
Imagine yourself in the shoes of your target tenant and invest accordingly. If you’re aiming for the student market, it needs to be clean and modern but not luxurious. If it’s families, it needs a very different approach.
As with point 3, try to detach yourself emotionally from the property and consider what will be best for the people living there instead.
We specialise in property investment and would love to share our knowledge with you. We’re a forward-thinking company based on traditional values and we’ll ensure you have all the information you need to make the right decisions regarding your buy-to-let. If you'd like to discuss a new or an existing single let, HMO or serviced accommodation unit with us, then email Paul Oddie our New Business Manager or call 01733 293900.