With a variety of steadily developing markets in the UK, property investment can prove to be a fruitful endeavor for those looking for long-term benefit. A tangible investment that comes with the responsibilities of being a landlord, it’s a rewarding experience, but one that is not without its challenges. If you’re looking into property investment, here are some of the general do’s and don’ts that you should consider.
DO: Consider the area
Examining the best possible area to invest in currently is a crucial step, as when you take a closer look, it’s clear that some are performing better than others.
- Liverpool property is affordable and attracting a lot of investor interest. In 2018 rental costs improved by 2.65%.
- Manchester is another northern city that is trending positively in its rental yields and affordable cost for tenants. The M14 postcode, for example, which includes the Fallowfield area (popular amongst students), reaches great average rental yields at around 10.1%.
- London is evidently an attractive destination for tourism and alike, being the capital, and yet its investment opportunity is worrisome. Whilst house prices sit at high value but have low growth, its rental yields are outperformed in the north.
An off-plan property investment, one that is available in its initial stages of building and planning, can be an early gateway into an emerging and competitive market. With the increasing technical fidelity of virtual tours and VR software allowing investors a chance to view an accurate approximation of their property before completion, it is now easier than ever before to make a more confident, well-informed decision.
DON’T: Shy away from asking for advice
Finally, a helpful tip is to not be afraid to reach out to property experts, should you need advice. RW Invest, for example, offers an extensive guide for getting started in property investment, featuring sections on integrating tax into your budget, finding out how to boost the value of your property, and even expanding your property portfolio.
DO: Consider your potential tenants.
Naturally, your personal tastes and likes may rub off on the design of the property, which is fine, but make sure that this doesn’t clash with what your ideal tenant would be looking for. Making the apartment as appealing and adaptable to the tenant’s needs is paramount unless of course you want to live in the apartment yourself, but that isn’t what buying to let is about. Keep your inner DIY to a minimum.
If considering, for example, studio student accommodation, you may want to prioritize again a minimalist, space-efficient home that is flexible for young people, and one that is within a reasonable distance of their university/college. Broadband is also an important factor among students, what with assignments and coursework largely being completely online. These sorts of things make your property that bit more attractive to the potential tenant.
DON’T: Ignore your responsibilities.
Investing in a buy-to-let property understandably comes with some responsibilities on the part of the owner. These include ensuring your property is safe from health hazards, providing a valid energy performance certificate, and making sure all relevant documentation Is in place and completed correctly. These sorts of issues can be tricky, but overall, they make the letting experience run a lot more smoothly for both landlord and tenant.
If deciding to furnish your property, choosing luxury items that make your home stand out from the crowd could prove important. The minimalist approach, which is becoming increasingly popular in the city apartments, can be a good cost-effective way of furnishing to a high standard whilst on a budget.