UK Top Tips for Buy to Let Beginners – Part Two
Following on from part one of our blog post earlier this month, here are some more of our top tips to help you choose a UK buy-to-let property.
Buy To Let Property Investment Is Not A Short-Term Project
Whatever your situation, it is essential to understand that buy-to-let property investment is by no means a short-term prospect. All property investment needs to be conducted in the medium to long term. This generally means a minimum of five to ten years, but usually longer.
You should look at the market as it will be five to ten years into the future and beyond. Property investment remains the best performing asset, with projected predictions for UK buy-to-let investment looking extremely positive over this longer timescale.
Revenue Streams From Buy To Let Property Investment
Capital growth and rental yield are the two ways in which you can make money as a property investor. It is important to understand these before purchasing a buy-to-let property in the UK, in order to maximise your opportunities.
Capital growth, or capital appreciation, is profit made on an investment. This is measured by the increase in its market value over the cost price.
Rental yield is the return that a property investor is likely to receive by renting out their property. This is a percentage figure, which is calculated by taking the yearly rental income and dividing it by the total amount of money invested in the property. It is important that your rental yield is enough to be sustainable over the long-term.
What Is Your End Goal?
When investing in buy-to-let property in the UK, you should ask yourself what the end goal is for making the property investment. Is it to build a pension pot or increase your income? Maybe you’d like to add to your property portfolio or be an overseas property owner with the ability to rent the property out? You will only know if your investment has been successful if you know what your aim was in the first place.
Location, Location, Location
Always remember when investing in UK buy-to-let property that the three most important things to consider are: location, location, location!
The condition and price of any property can be changed. You can even change the size or layout of the property. The one thing that you cannot change is the property’s location. The location creates desirability. Desirability creates demand. And demand raises the value of your investment, as well as the potential rental yield!
Think With Your Head, Not Your Heart
If you invest with your heart, you will make decisions based on what you feel. This can lead you to make investments that you never should have considered. A decision made with your heart will often tell you to go ahead regardless of the cost or the potential problems, hoping that the numbers will ‘work themselves out’.
Always think with your head, not with your heart, and do your sums diligently beforehand.
Buy To Let Investment Property Is Not Your Home
Remember when viewing properties that you are not buying the property for yourself to live in, but as an investment. Do not think about what you want from the property, or what you like about it, but what potential renters will want from it or like about it. Ultimately, they are the ones who will be living there and the property needs to appeal to them – not to you.
Due Diligence
Always carry out your own due diligence and make sure that you engage a good team of professionals, for example lawyers, accountants, and financial advisors.
Take a look at some of our favourite buy-to-let properties in the UK.
St Barnabas, Finchley, London
These luxurious one, two and three bedroom apartments are only 30 minutes from central London. With highly refined specifications and idyllic surroundings, the charismatic church of St. Barnabas has been at the heart of the Barnet community for over a century. Residents will be able to take advantage of the extensive transport routes plus social and cultural attractions right on their doorstep.
Signia Court, Wembley, Middlesex
Set over eight floors, all of the one, two and three bedroom apartments at Signia Court benefit from balconies or outdoor space and many are dual aspect.
The fifth floor offers a spacious terrace that provides residents with a unique private area to relax and enjoy views of Wembley Stadium and the London skyline.
Broad Oaks, Downham Market, Norfolk
The Broad Oaks development enjoys excellent transport links to the neighbouring cities of Cambridge, Peterborough, and Norfolk. The 30 acre site comprises a mix of one, two, three and four-bedroom luxury homes. Broad Oaks is ideally located to satisfy the demand for well-priced, freehold accommodation for young professionals and families alike.
To speak to us about any of our investment properties, call us on 0333 3034 767 or send us a message today.
