Buying property as an investment has proved to be a successful and lucrative investment decision for many but can feel very daunting. Here’s everything you need to know in order to get started!
1. Researching your property portfolio
We recommend starting with some thorough research to clearly plan out your property investment strategy. A good place to start is to pinpoint what areas you would need to invest in to get the best returns, what kind of tenants you would want and how you would manage your properties – whether you manage them yourself or you enlist a management company.
If you’re purchasing an off-plan property, you will need to learn about the procedures and risks that comes with buying a property before it is built to ensure that you’re in a position to make that type of investment.
If you’re abroad and you’re looking to start your portfolio in the UK, you will also need to familiarise yourself with UK taxes and legislation when it comes to buying property.
2. Financing your property portfolio
Getting your finances in order is a vital step when starting a property portfolio. You need to consider your budget and how you will go about financing your properties – whether you’ll need a mortgage or you’ll purchase your properties in cash. The amount of capital you’ll need to start will vary according to the type of property you have in mind and what you will use to fund the property, for example, you will have a lower entry cost if you use a mortgage compared to a cash purchase.
You will also need some kind of emergency buffer for maintenance costs, void periods and any other unforeseen situations that you will experience as a property investor.
3. Types of property to invest in
There are a wide variety of properties you can purchase to start your portfolio. What type of property you go for largely depends on what kind of tenant you want to attract, and what your budget is. Freehold houses are ideal if you want to attract families, but the entry prices are usually higher and you will have to maintain the property yourself or through an agent. If you’re looking to attract young professionals and students, then apartments will be a better option – they have a lower entry price and are managed for you, however, there are additional costs such as ground rent and maintenance fees.
As a first-time investor, it might be advisable to start your portfolio with apartments and purpose-built student accommodation, as they’re hands-off investments (meaning that they will be managed for you) and have much lower entry prices. Investments of this nature will also work for you if you’re abroad and you’re looking to build a portfolio in the UK as you don’t need to be present to manage them.
4. Buying property
Once you have done your research and have everything in place, it’s time to start building your property portfolio! While standard estate agents do have some investment properties, you will be better off buying with an agent that specialises in a wider range of investment suitable properties as they will be able to provide you with advise that is tailored to you as an investor – from explaining financial details to helping you find the right type of property and area.
We also have access to off market properties via our exclusive tool, which you can use to browse properties in your desired areas:
https://stonelinkinternational.homesearch.co.uk/
If you are an overseas investor who is starting a property portfolio in the UK, and you’re concerned about viewing properties – don’t worry! We can provide all the information that you will need, such as financial details, brochures, floorplans and area information. You can also request virtual viewings to see the property for yourself.
If you are looking to buy an investment property we would be delighted to assist and help you with a ready made team. Call direct on + 44 (0) 207 993 4081 or simply send an email for a fast response.
