Interested in the UK property market? Want to find out more about how to get involved in a long-term investment strategy? To get started, here are five of the most commonly asked questions about the process. It can be a burning question or something that you may not have even considered. Still, it can help you to gain confidence in taking the first step in your investment journey.
What Do I Need to Get Started on Property Market?
As you probably might expect, you will need substantial capital. One can put it into a property investment strategy (particularly dependent on the type of property that you end up investing in), but you should also have a solid financial plan and long-term goal before beginning. Making these preparations will ensure that you make positive, forward-thinking strides in every move you make.
If you’re motivated and inspired by the idea of investing in property, then having a lesser amount of capital doesn’t necessarily need to be a restriction. You might decide to look into getting a buy-to-let mortgage on a rental property. It works in a similar way to a typical mortgage and will allow you to get started on building your portfolio in 2020 without having as much of a down payment initially.
Alternatively, you could also think about looking to some of the more affordable areas of the market, as they can often actually be the most lucrative anyway. Liverpool for example, the burgeoning northern city, is experiencing a ton of growth at the moment and has some of the best capital appreciation predictions and rental yield averages nationwide.
The average house price in Liverpool according to Zoopla currently sits at £178,668, as opposed to £657,770 in the popular capital city, London. This means that for the average price in London, buyers could theoretically purchase three properties in Liverpool, and still have plenty of capital left over to assist with maintenance and management. With higher rental yield averages too, there seems to be better potential in the northern alternative to make a higher, faster income stream.
How Do I Know My Investment Stands the Test of Time
It’s well documented and thought among investors that property is among one of the most secure investment asset classes. This is due to the fact that property is a physical, tangible thing you can run like a business. When you look at fluctuating property prices they’re a lot more middling and steady. It gives the idea that finances will be secure and bolstered over-time.
Every property will be successful. If you want to ensure that your property grows steadily over time, you need to look towards specific areas. They need to have plenty of long-term demand, regeneration, and promise for the future.
An increasing number of people move to urban areas every year in search of the social and work opportunities it affords. Investing in a growing city in the UK is a great example of how to help secure growth. By buying properties such as city-center apartments or flats that slot into the city, you stand to benefit from popularity and demand increased by nearby projects as they flourish.
Are you interested in finding out more about the UK property market in 2020, and have a question, query or issue that isn’t answered in this short article? Why not take a deeper look at some of the many informative articles or guides out there to delve deeper? RWinvest, a property investment company with opportunities in many growing areas around the UK, has explanatory guides on buy-to-let mortgages, rental yields, capital appreciation, and even specific growing areas such as Manchester and Liverpool. Alternatively, they also have dedicated consultants on hand. They can help you directly if you have a specific inquiry.
The Best Property Types Available
By analyzing the market and current trends you’ll be able to understand what is the best on the market of real estate. However, this decision should also depend on your priorities as an investor. Consider what type of investment strategy that you want to undertake. If you want a hands-off investment, then a city apartment with a management company would be perfect. Property types can range from standard residential properties to student properties and hotel investment. Look at the different benefits of each and decide which aligns best with your personal goals.
The Best Areas for Investment
In the UK at the moment, a ‘Boris Boost’ has seen the highest house price growth on record in January (partially a result of the definitive December election), Helping to eradicate some of the stagnation brought about in the last few years through Brexit angst. Again, some of the best areas currently include northern cities such as Liverpool, where development is booming.
Having experience in a given area doesn’t necessarily make it a sound investment decision. You shouldn’t choose somewhere just because you know it and are passionate about it. You need to keep in mind that this property is ultimately a business venture. So, personal biases or preferences are irrelevant if they don’t make you money.
However, there are benefits to having an investment property in an area that you know. You will be able to vouch for the popularity of certain areas. Moreover, one can understand fully the context of your property in relation to surrounding points-of-interest. One can also use this knowledge to market property to potential tenants. Ultimately, you should leverage this information if you have it and use it to your advantage, but don’t let it cloud your judgment.
Property Market – Invest in a Property Early
Particularly with city-center properties, off-plan investment is a new strategy. It is quickly growing in popularity, allowing investors to purchase early before the development has been finished. The benefits of off-plan are good. However, the uncertainty of not being able to actually see the property before committing is an understandable concern. In the modern-day, investors with an off-plan build will be able to take advantage of technology. Such as virtual reality viewings and CGI constructions of their purchases.
If investing in off-plan property or if you trade online, ensure that you only work with a reputable development company on a property market with a proven track record. It will give you peace of mind that there won’t be any issues along the way.