Property investment is the asset class that offers an entry level to all types of investor and 2021 promises to be an exciting year for both experienced landlords and for those stepping onto the ladder for the first time.
We anticipate there to be an abundance of opportunities across the UK so thought it would be good idea to look at our three top tips for property investment success. Being prepared is imperative to maximise our potential.
1. It's all about the location....
It's the oldest adage that you will see and hear but if we were to revisit our three top tips in 50 years time, this will still be the resounding number one. Purchasing your property in a location that will provide you with a significant scope for capital growth alongside a strong rental market is key to the long term success for your investment.
Location decisions range from the actual part of the country in which you wish to purchase but also factors in the demographics of the region, i.e. strong commercial activity, student retention, funds for regeneration, schools, local amenities. The list goes on and on and for those investing from afar can seem a daunting exercise. This is where an experienced and knowledgeable property agent is required to assist and take the research process weight of your shoulders.
This decision is the biggest you will make so take your time and enlist some expert help.
2. Managing your property
So, you have decided on your location, you have purchased your property and have now been handed your keys. Congratulations....., but what happens next? Your work is not finished yet! A tenant now needs to be found and that tenant needs to be looked after also. Your property needs to be maintained and on a regular basis, you want to be witnessing your rental income increase. A Management Agent you can rely on and trust is imperative to all of the above and more. In fact this is a decision that is considerably underestimated by many. Think about it, you could be thousands of miles away and this agent will be the first point of call for all aspects related to your investment. You need to ensure you are securing an agent that will give you confidence and security.
Management agents need to be assessed on a range of options including but not exclusive to costs, levels of service, attitude, track record and many many more. Selecting your management agent is a huge decision and one that successful investors will ask their property agent to assist them with. Take away the stress and allow an expert to do the homework for you before you speak to them personally to establish some rapport.
We cannot emphasise enough the importance of employing the right management agent to look after your investment.
3. Mortgage advice
We are lucky to live in a world of many choices but making the right choice can often be a difficult one to to make as we are presented with so much information. Financing your purchase is no different and seeking advice on the best mortgage/loan for you is imperative to the long term success of your investment. We all have friends and colleagues who claim to be experts in the field but what is right for them may not be right for you.
Whether you should be on a fixed or variable rate, interest only or repayment, overpayment strategy employed, 15 year or 20 year loan. All of these areas need to be addressed and tailored indiviudally for you and an experienced mortgage professional needs to be factored into the process.
This could be one of the most important decisions you will make for any purchase.
Three simple tips but imperative ones to follow to ensure your investment has the best chance of success. It is impossible to cover all of the areas within each individual area but we trust this gives you a flavour of the factors you MUST consider before even considering your next investment.
The ideal investment is a marriage of your individual needs and the application of expertise and experience of your chosen property agent. We look forward to assisting our clients starting and growing their portfolios over the coming year.