Buy to let investment is one of the best asset classes to consider if you want to make money from property to boost your income, grow a diverse investment portfolio, and make returns that will help you in later life. If you’re interested in getting started with the buy to let property market and want to find out tips on real estate investing for beginners, you’ve come to the right place. In this guide, we’ve rounded up four top tips useful for the beginner property investor who wants to know how to get into property investment.
How to get into property tip 1 – Think about your reasons for investing
First things first, you need to be sure that you’re ready to begin investing. There are different reasons why people consider purchasing a buy to let property, and it’s important to have a clear vision of your own reasons for investing. Are you getting started with property investment as a way to grow your existing finances alongside your other commitments such as a full-time job? Are you using property investment as a tool to generate an attractive retirement fund for later life? Or, are you hoping to launch a full-time property business, and see your initial buy to let investment as a good first step towards this? Knowing your reasons for investing can help you create a more considered and detailed strategy, as different motives could lead to different decisions being made. For instance, if you’re investing in order to maximise your retirement funds, you should pay a lot of attention to capital growth prospects. By investing in a buy to let property in a high-growth area, not only will you build significant savings through rental returns, but you’ll also be more likely to make big returns on your property sale if the value has increased.
How to get into property tip 2 – Get financial advice
Before you even consider how to get into the property market and begin investing in property, you need to make sure you understand the financial aspects of buy to let investment. Buy to let property investment is a big commitment and should never be rushed into. You should first be sure that you have the funds needed to make your investment, and then learn about the additional costs involved. This may mean speaking to a financial advisor to learn about different taxes that buy to let investors are required to pay, and to get a better understanding of all the money-related lingo involved with the property market. Investing in real estate is a business venture, after all, so you should treat it like any other business plan by putting a financial focus onto your investing strategy.
How to get into property tip 3 – Invest with a property investment company
For many people wondering how to get into property, buying property through a company is often a good idea. Using a property investment company is a good tip when it comes to real estate investing for beginners, allowing you to explore a range of buy to let opportunities from trusted property developers, without having to search around for an investment property yourself. Property investment companies will do most of the work for you, finding property deals with the most impressive yields in high-growth areas, liaising with solicitors, and even finding you a suitable property management company if you want to make a hands-off investment. Many investment property companies, such as RW Invest, will also offer below-market property prices for their off-plan properties as well as a guaranteed rental income on certain properties for a period of one or two years. This way, you can begin investing in real estate knowing that you’re in good hands and be guided through each step of the buy to let process.
How to get into property tip 4 – Do your market research
While a property investment company will do a lot of the work for you, this doesn’t mean you shouldn’t carry out your own research on the UK housing market before finding a suitable opportunity. Different types of real estate investment will have varying levels of potential behind them, which is why investigating the UK property market is essential when you get started with an investment business, allowing you to gain a better understanding of the best cities and property types to invest in. Pay attention to things like rental yields, capital growth and predicted market price changes, and tenant demand, as these are all major components of a solid investment and should make up a big part of all buy to let investment strategies.
You should also remember to research your target tenant when looking for your first buy to let property investment. If you’re investing in a residential property, for example, think about the type of tenants who you’re likely to attract. For city-centre residential properties, your most likely tenant will be a young professional. Take some time to research this tenant group to find out what they’re looking for in a property, as this will give you ideas on certain things to include in the property to give it some edge compared to other rental properties on the market and allow you to raise your rental costs.