Are you ready to enter the world of property investment? If so, you have made a great decision, but there is a lot you need to learn. While you may have found purchasing your home an easy process, investing in a buy-to-let is slightly more complicated.
To help you achieve success in property investment, read these top five tips to help you to decide whether investing is for you and if so, you can establish the next steps you need to take in order to make your real estate dream a reality.
- Lots of research
Although you have probably done some form of research to get to this point, you should conduct further enquiries to make sure that property investment is right for you. This includes studying the property market to establish the type of tenants you wish to target. This could include students, young professionals, families and more. If you have no particular tenants in mind, you should make sure you choose the target market that is most in-demand to achieve success and good capital growth.
Other forms of research include the type of property you want to rent out, such as residential properties or student accommodation, which could include anything from traditional houses to contemporary apartments. You should also look into the purchase costs of these properties and weight up any additional expenses to establish what you can afford.
- Assess your capital
Once you have completed your research, you can then analyse whether you can afford to invest. If you have enough savings, you could use it all, however, usually investors tend to use some of their savings alongside an investment loan. These expenses include the purchase price, renovation costs, and maintenance outgoings, which should be deducted from your property listing price to establish your profit margin.
If you have any outstanding debt, you should consider paying this off before purchasing your investment. This includes everything from student loans to unpaid utility bills. Doing this will make sure that you have no outstanding expenses to pay and can, therefore, focus your time and money on your investment.
- Get professional advice
With it being your first time investing in property, you will need all the advice you can get to ensure you make the right decisions. To get the guidance you need, you should contact a qualified property investment company like RW Invest, who can assist you with every aspect of your investment.
Property experts can advise you on everything, including the demand for particular properties and what locations have the best rental yields and capital growth. All of this will offer you complete reassurance that you have invested successfully and securely.
- Location is key
One of the essential things to consider when investing is choosing a location that will offer the best return on investment. This means finding properties where there are plenty of amenities. For example, if you decide to invest in student accommodation, then you should purchase a property in proximity to a local university, which is usually in the city centre. This will ensure that you attract the right tenant, allowing you to obtain consistent monthly income.
You may want to look for a location not far from your own home, making it a lot easier to manage. However, you should take into consideration whether your neighbourhood has a low property tax rate and has increased job opportunities available. These determinants along with many others are some of the most prominent factors for tenants when choosing the right property. Therefore, it is essential that you follow the advice you are given to attract tenants and achieve investment success.
- Go low-cost
You may have the finances to purchase a high-end property; however, for your first investment, you should consider investing in a low-cost property. The reason for this is so you have enough capital left over to account for renovation, as you may have calculated the costs for this but may not have taken into consideration any future issues during your remodelling.
Investing a small amount of capital will also make sure your investment is secure. You will not have paid out a ridiculous amount, so you will not suffer if for some reason you did not reach your expected profit margins. This offers complete security and reduces risk, resulting in protection for yourself and your investment.
Disclosure: this is a collaborative post