LPC Invest's Top 5 Tips for Investing in Property
First time investor? Here’s our top 5 tips for investing in property, whether you’re a first time or fiftieth time investor.
1. Make sure you have your finances agreed
Be sure you have budgeted and planned how much you can feasibly spend and borrow when it comes to purchasing a property, whether this is a cash purchase or you will be applying for a buy to let mortgage. There will be deposits, taxes and other minor costs when purchasing a property and you need to be sure you can cover all of these and still live comfortably.
2. Be sure you are investing in the right property for you
Are you looking for a high rental income? Or just simply capital growth? To determine which type of property you invest in, you should have a clear plan for what you want your end goals to be and how to get there. Are you interested in student or residential property?
3. Location location location
You must research the location you’re buying into. Make sure that there is sufficient demand in the area to warrant your purchase and that there will be tenants looking for a property like yours when renting. Manchester and Liverpool currently offer some of the highest rental yields in the UK today, with a significantly high population of young working professionals.
4. Buying a resale? Ask the right questions
If you are buying a resale the chances are there will be a reason that the property did not sell in the first instance. This can often be due to lack of funds on the buyers behalf, but make sure you’re informed of the circumstances. Be wary of cladding issues, onerous leases and the standard of repair of the property. These issues could potentially jeopardise your mortgage possibilities, or incur hidden costs of repair. Always make sure you see the property yourself.
5. Off plan? Research the developer!
There are many fantastic developers in the UK that we work with regularly, however, there will of course always be the odd one in the bag. Make sure you do your due diligence and research the developer to make sure that you are not putting your hard earned investment funds into a property that may have issues.
Have you got a top investment tip that we haven’t mentioned? Email us at email@example.com with your tip and we will add it to our never ending list.
For more information about property investment visit our website at www.lpcinvest.com or call us directly on +44 (0) 161 713 3883 today to talk to our team of experts.