Things to consider before buying your first investment Property
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When buying your first investment property it can seem like you have a million and one things to deal with which can be very daunting, however, it certainly doesn’t have to be complicated. I would advise firstly, before looking at anything else, that you need to build a relationship with a local and knowledgeable Lettings agent. The right agent will be able to listen to your requirements, assist you on expected rental returns, give you peace of mind when it comes to finding a suitable tenant and, ultimately, give you advice on the right investment for you.
Why do you want to invest?
You have probably thought about investing in property for some time before deciding to take the plunge. Every investor has different reasons for investing. For some it’s a retirement plan whilst for others it’s to boost their current lifestyle. Before anything you need to work out whether you are going to be a capital growth investor or a yield and monthly return investor. Speak to your lettings agent about what you want out of this venture, and they will then be able to sit down and create a 5–10-year plan with you on how to get what you are setting out to achieve.
What level of service will I need?
As a first-time investor you will need to ask yourself, “do I know every single one of the 500 pieces of legislation that govern the private rental sector?” If the answer to this question is no, then fully managed should be the only option that you are considering. You are purchasing potentially one of your biggest assets so allow your agent to keep you legally safe. More benefits to this can be found in our other blogs, specifically ‘Why tenants prefer a Fully Managed Property’.
How are you looking to invest?
Whilst many new investors will just want to buy one property for now, some do not realise that this may not be making your money work as hard as it possibly can for you. For example, if you are buying a property for £280,000 cash, have you spoken to a financial advisor about the possibility of splitting that cash across two or three properties whilst utilising mortgage small options? Ultimately investment is all about making your money work for you and having all your eggs in one basket may not be the best way of doing it for you. Speak to one of our financial advisors today to see how we can help.
In summary, property investment doesn’t need to be a complicated or stressful process. Providing that you have the right people, with the right knowledge around you investing in a buy-to-let property should be exciting, rewarding and hassle-free, so please feel free to reach out to us as we would love to help you invest in a way that maximises your return and minimise the stress!
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