Purchasing your first investment property can be a stressful time, particularly as everything will seem new to you. If you feel ready for embarking on a property venture, one of the best ways to prepare is to ensure you have your finances in order. This way your financial future in property will look extremely bright.
The UK property landscape is recognised worldwide as one of the most thriving markets for achieving prosperous returns.
This has led to higher demands set by both buyers and tenants, rising property prices across the country as a whole, and a very promising future for all investors involved.
Steps to Follow While Doing Your First Property Investment
Before acquiring an investment property, it is essential to carry out background research in order to make an executive decision.
Researching the current market as well as the future forecasts will give you a better idea of what areas to invest in. Spend some time researching the UK cities and the rental returns they offer to use as a strong indicator of how successful your investment may be over the forthcoming years.
Liverpool is a key city with a proven track record of delivering some of the highest returns in the UK, reaching 11.79% in certain areas. Be aware of the demand for properties within the area.
Often those cities with a large student population are strong opportunities for a solid investment providing robust returns, as well as high growth potential.
#2. Property Type
Deciding when and where to invest is the first step but choosing your property type is just as important.
Choosing between student or residential properties can be overwhelming but using the expertise from property investment companies can help to steer you in the right direction.
Both forms of investment have their own pros and cons, but the positives far outweigh any slight downsides you may experience along the way as any negatives can be eliminated with the help of thorough research.
For example, student properties are always in high demand, however, some investors choose other alternatives due to the fear of rowdy or unreliable tenants.
Another decision to make is whether you wish to invest in a completed, refurbished or off plan site. Off plan properties are usually priced significantly below market value due to it being a slightly riskier investment, although these have the potential to appreciate in value even before they have been fully completed.
#3. Be Realistic
It is important not to bite off more than you can chew and be as well prepared as possible. Investing in property is extremely rewarding provided you have all your finances in order before you commit.
Familiarize yourself with the financial jargon surrounding a property investment purchase and research the financials within the market like tax changes, mortgages, and potential yields.
Sourcing a financial advisor would be really beneficial to make sure you understand everything beforehand. Liaise closely with the property investment company you are working with to decipher how much you need to pay up front and what is expected of you upon completion.