06/07/2017
If you’re investing in property for the first time, we’ve put together our top tips to ensure your purchase goes as smoothly as possible.
Make sure you do your research
Before you sign the contract, make sure you’ve done your research and have all the information you need to make an informed decision. If you were buying a car, you would thoroughly research not only the vehicle’s performance but also its service history, its previous ownership, and the costs of running the vehicle and whether you can afford those costs. It’s important to do similar extensive research when buying a property.
You need to carry out extensive research into various aspects of the purchase: not only prices but also rental yields, capital growth and the demographics of the area in which you’re looking to buy. Thankfully a lot of this information is available online nowadays, which saves you money and allows you to research and consider purchasing properties that are further afield.
If you are outside the north of England then you would be well advised to consider conducting research into properties in this region. Northern cities such as Bradford, Manchester and Liverpool offer excellent opportunities for investment. This is because the government’s Northern Powerhouse strategy is driving huge industrial investment to the north, whilst property prices remain lower than those in the south of the country. There is an great opportunity for capital growth and excellent rental returns in the north, especially in comparison to other regions.
Look outside the traditional buy-to-let market
If you restrict yourself to investing in the traditional buy-to-let market, you may be missing out on opportunities in other, alternative areas. For example, student accommodation offers excellent returns and high demand and since 2011 it is in fact the fastest growing asset class in the UK. Demand for student accommodation is only set to increase due to the country’s excellent academic reputation.
Another slightly offbeat investment opportunity is provided by care homes and hotel rooms, which as well as offering low entry costs and providing excellent rental returns, are also conveniently exempt from George Osbourne’s recent stamp duty hike. An advantage to investing in such properties is not only the potential 10% yearly returns, but also the fact that they are often managed by specialist operators, meaning that there are no ongoing maintenance and management costs to pay.
Invest with clear financial goals in mind
Inexperienced property investors can sometimes make the mistake of buying with their heart rather than their head. An investor might always have wanted to own a farmhouse in the countryside, and may be tempted to invest in such a property to fulfil a dream – without fully considering whether the property will make money. The primary goal of property investment is after all just that – to make money! It’s vital to keep this primary goal in mind when investing in a property. Don’t invest based on emotion but rather when you have a clear financial goal in mind, that will generate an income.
Seek advice from a reputable specialist
A reputable property investment specialist will have years of experience and can be trusted to offer high quality, impartial advice.
With many years of industry experience and a strong business strategy, Bentley Klyne is a market specialist in the residential and buy to let property investment sector. Contact us today to find out more about our excellent property investment opportunities in Bradford, Leeds, London and elsewhere.
