The rental market is going from strength to strength, with UK house prices forecasted to climb by 22.8% over the next five years. This means that now is the time to take the leap into property investment, to see the most capital appreciation and growth.
We've explored 4 ways in which you can get your foot onto the property investment ladder.
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While this can seem like an obvious one that some investors will turn their nose up at, understanding the UK property market is key to finding any success in the investment world. You need to understand price trends, rental yield and their hotspots, the generation opportunities, and transport upgrades, as well as areas with strong employment opportunities that have exponential growth on the horizon.
You will also need to know about the costs involved with purchasing property, and the legal obligations that will sit with you as a landlord. Ensure that you're compliant with legal issues, and know what sits with you and what doesn't - a bad tenant can absolutely ruin a landlord if they are not fully prepared
While the act of 'flipping' property has been successful for some, the majority of property investors see the strongest and most reliable returns across long-term ownership. If you're the type of person who needs to see results right away, property investment might not be the right choice for you.
Property value increases over time, and the longer the timeframe, the stronger the growth. It isn't impossible to make money short-term in the property industry, but the best results come from giving time and space to an investment that will return strong capital appreciation and growth.
One of the main benefits of investing in an off-plan property is how quickly the value typically increases once a property is completed. They are usually sold off-plan at a lower price, and because you're buying so early, you often get the best pick of the various units - so if you're looking for something south-facing, or a corner unit, you tend to have more freedom of choice.
Buying off-plan can also mean that you can negotiate more with the developer, to either secure a better deal or to get some form of discount or perk upon completion.
Managing a property can be a hugely stressful job, which is why a lot of investors will choose to implement a property manager to look after their investment. While looking after one or two properties doesn't seem too stressful, many investors have much wider portfolios that are simply impossible to manage on a solo basis.
Working with a Property Manager not only takes the stress off the day-to-day issues that your property may experience, but also covers you for legal regulations that you may not even be aware of. There is a cost involved that you will need to take into account, but most investors see this cost as a worthy price for the ease and lack of hassle it offers.
No matter what level of investing you want to explore, from a few properties to an entire portfolio, we believe that you should still reap the best benefits and get the ultimate support during your journey.
If you're looking to invest, reach out to our teams today.