There are many different ways of becoming a property investor. By its simplest definition, you simply need to own property which you plan to use for profit rather than to live in, but there are many different ways of going about this.
For beginners, it can often be useful to contact a property investment company. With years of experience in the property market, a team of sales professionals with in-depth knowledge of property investment and post-sales teams only a phone call away, property investment companies are great for guiding you through the process of becoming a property investor.
You will need a sizeable amount of money to become a property investor though, as even though there is a range of cities with affordable house prices, it is still expensive to own property.
The type of property you want to invest in can affect how much money you need when investing. Apartments, the most common kind of rental property, are often cheaper than houses, meaning it is more affordable to purchase.
Residential property is often more affordable than commercial property due to the smaller size of properties and this option is how many buy-to-let investors choose to invest their money.
It is important to remember that property is a long-term investment, so it can take time to begin earning returns on your investment. And if you choose to sell, then you will not see money in your account right away.
If you decide to use an interest-only buy-to-let mortgage to invest in property, then your mortgage payments will be paying off the interest accrued rather than the mortgage itself. With interest rates currently being raised by the Bank of England, this may prove to be more expensive over time.
However, buy to let mortgages are also usually available on a repayment basis.
Lenders are also unlikely to allow first-time buyers to borrow a BTL mortgage, so already owning property is recommended. This will also help you understand issues that your tenants might face when living in your properties.
Navigating the UK property market can be a hassle, as finding properties with the right combination of an affordable market value and high rental yields can be tricky. If you are choosing to do it yourself, contacting a lettings agent is a good way to research the property market.
They can help you identify areas you might consider investing in, as well as properties that could fit your investment goals.
Wherever you are in your investment journey, it is important to do due diligence when investing. No investment is risk-free, and although the property market is one of the most stable in the UK right now, there is no guarantee your investment will be a success.