Property Investment – Everything You Need to Know About In 2022

Everything You Need to Know About Property Investment
Amy Jackson
Amy Jackson
Property Editor
10 Min Read

Everything You Need to Know About Property Investment Your Ultimate Guide to Investing in Property

If you’ve found your way to this guide, the chances are that you: 

  1. Have heard about how great property investment can be at providing financial freedom.
  2. Have been thinking about investing in property for a while and are ready to take your first steps.
  3. Have been considering ways to boost your income and secure your financial future.
  4. All of the above.

But whatever your reason behind researching property investing, there’s a lot you need to know. 

That’s why we’ve put together this detailed and helpful guide to becoming a property investor, including tips on everything you should know about investing in property. 

From how and why you should invest in property to the many considerations that come with buying properties for investment, you’ll find it all in our guide. 

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    What is property investment? What is property investment?

    What Is Property Investment? 

    Property investment is a strategy that helps people achieve their financial goals and grow their income through ownership of income-generating real estate. Property investors make money from property through regular rental returns, returns from the resale of a property, or a combination of both.  

    What Is an Investment Property? 

    An investment property is a property that an investor purchases to make money. The money made from this property comes from rental income and/or capital growth returns. Investment properties can be owned and managed by an individual, group of investors, or a corporation. 

    Read our blog post, “what is an investment property?” to discover more.  

    What Are the Different Types of Property to Invest in? 

    There are different types of property that you can invest in, and you should find out about each of the options available to you before you get started. 

    In the UK property market, some of the most popular types of property that people invest in are: 

    • Residential buy to let properties. 
    • Student buy to let properties. 
    • Off-plan buy to let properties. 
    • Commercial properties (e.g. office blocks). 
    • Buy to sell properties (also known as property development or property flipping). 
    • HMO properties. 
    • Hotels. 
    • Holiday lets. 

    If you’re interested in owning a rental property, buy to let will be the strategy you opt for. But you will need to consider which type of buy to let property is right for you. 

    Alternatively, you might not want to invest in any of the above options at all. Instead, you would rather find out about some different ways you can invest in property, such as investing in REITs (Real Estate Investment Trusts). 

    Read our helpful blog post to discover more about the different types of property you can invest in.

    Why Invest in UK property 2021/22? Why invest in UK property 2021/22?

    Should You Invest in Property? 

    Why Invest in UK Property?

    There are so many reasons to invest in UK property, especially in 2022. Some of the main benefits of investing in a UK property are: 

    • High rental returns and high capital growth returns are available. 
    • You can build a diverse portfolio. 
    • You have the choice of different investment strategies. 
    • Real estate is a low-risk venture compared to stock market investments. 

    Throughout 2021, the UK housing market made headlines due to its ongoing growth. 

    Huge capital appreciation is expected over the coming years, making now a great time to invest and take advantage of affordable prices and enhanced returns. 

    Discover more about the benefits of buy to let investments with our blog post featuring 12 key reasons to invest in property in the UK. 

    Is Property the Best Way to Invest Money? 

    If you’re cautious about putting a big chunk of your funds into an investment you’re not familiar with, then investing in any asset can be a daunting prospect. 

    You may be wondering, ‘is property actually the best way to invest my money?’ and questioning whether your hard-earned income and long-term savings are better being invested elsewhere. 

    There are some reasons why many investors favour property over other assets: 

    1. As mentioned, the tangible asset of real estate is considered lower-risk than more volatile investments like stocks and shares. 
    2. Property can be a hands-off venture if investors hire a management company, meaning property owners can boost their passive income. 
    3. Property is an excellent long-term investment for those keen to secure their financial future and prepare them for retirement. 

    Find out why property is the best way to invest your money.

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    Is investing in rental properties worth it? Is investing in rental properties worth it?

    Are Rental Properties Worth it in 2021/22? 

    Aside from the benefits of investing in rental properties, you may be questioning, are investment properties actually worth it? 

    While there are many different reasons people might consider investing in property, the main reason is to increase income. 

    With this in mind, is buying a rental property a worthwhile venture in 2021/2022 if your goal is to increase your income and make money? 

    Currently, the UK rental market is seeing some of its highest-ever demand. At the same time, average property prices have soared to over 10% higher than they were in the previous year.  

    With this in mind, it’s safe to say that property investors in 2021/2022 can expect to make some huge returns. 

    To learn more about this and understand the pros and cons of investing in 2021/2022, read our detailed blog, “are investment properties worth it?”.

    Should I Invest in Property? 

    Whether you should invest in property is a personal choice. Only you can decide to get on the investment property ladder. 

    If investment opportunities with high returns through regular rental income and capital gains sound appealing to you, buy to let properties are something you should explore further. 

    Want more information? Read our quick guide “should I invest in property?” for more facts and figures to help steer your decision. 

    Things to Consider About Investing in Property Things to Consider About Investing in Property

    Things to Consider About Investing in Property 

    Can I Afford an Investment Property? 

    You might be keen to buy a property and begin your buy to let journey, but what if you don’t have the necessary property funds needed to get started? 

    One of the most important things to consider before investing is whether you have enough cash. 

    The purchase price of properties can vary in the UK, and property investors with a range of budgets can often find an opportunity that suits their needs and goals. Here are some of the things you need to consider regarding the affordability of property investments.

    Think About Funding

    Buy to let mortgages are the most common funding option for those buying property as an investment. They allow buyers to put down a deposit and pay regular mortgage payments that tend to be covered by the income they get from rent. 

    Most lenders will expect a deposit of at least 25% of the purchase price, while other lenders will require more. 

    Many property investors also choose to pay for their property in full with cash, especially those who don’t want the hassle of finding mortgage lenders and keeping on top of their mortgage payments. 

    There’s also the option of using a payment plan, which is offered by some property companies selling units in off-plan developments. 

    Remember Taxes

    Whether you’re investing in a typical buy to let residential property, a commercial property, or an HMO, there are taxes that all investors need to keep in mind. 

    From stamp duty tax to income tax, taxes can stack up quickly and need factoring in your property funds. 

    If you’re wondering, “can I afford an investment property?” and want to discover more about property funding options, buy to let taxes, and other expenses, make sure you read our guide filled with essential information to help you. Click the link to read now. 

    How Much Money Do You Need to Invest in Property? 

    Find Out With Our Updated Guide for 2022 

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    How to determine if your rental property is a good investment How to determine if your rental property is a good investment

    How Will I Know If My Rental Property Is a Good Investment? 

    When selecting a rental property for your investment, there are certain things you’ll want to look out for. 

    You want to be sure that you’re investing in property that not only fits your budget, but is also likely to offer you enough rental returns to make a profit. 

    This means that your property should have: 

    • High rental yields to ensure you’re making enough money through rental income. 
    • Be based in an area with evidence of strong growth for UK house prices to maximise capital gains. 
    • High levels of rental demand from young professionals and students to lower the risk of void periods and encourage long-term tenants.

    If you’re not sure how to find properties that tick these boxes, this is a key element that you’ll need to research further. 

    Click the link to read more about what you need to know to find out if your rental property is a good investment to get you familiar with identifying the best opportunities available. 

    How Long Can You Live in an Investment Property? 

    Depending on your circumstances, you may be wondering whether you can temporarily live in your rental property before you start letting it out to tenants or selling it for capital growth profits. 

    It’s important to know that if you purchase your property with a buy to let mortgage, then you won’t be able to live in the property at all as you would be in breach of your mortgage terms. 

    If you’ve purchased the property with cash, however, you could live in it for as long as you wish to, provided you’re not concerned about missing out on rental income. 

    Read our blog “how long can you live in an investment property?” now for more information on this topic. 

    Can I Buy an Investment Property If I’m a First-Time Buyer? Can I Buy an Investment Property If I’m a First-Time Buyer?

    Can I Buy an Investment Property If I’m a First-Time Buyer? 

    While the average person will already own a home before purchasing an investment property, some buyers consider investing in buy to let as their first property purchase. 

    But is this a good idea? Is it better to rent and buy an investment property instead of becoming a homeowner before you invest? 

    There are benefits and downsides to doing this. Benefits include: 

    • The ability to build your income allows you to purchase a more expensive home of your own in the future. 
    • Tax benefits such as reduced stamp duty tax. 

    The downsides include: 

    • Difficulty securing a mortgage, with mortgage lenders wary of first-time buyers seeking a buy to let mortgage. 
    • If you rent a home while owning an investment property, your potential positive cash flow could be inadequate depending on your rental costs vs rental income. 

    Considering buying an investment property as a first-time buyer? Read our blog post answering “does an investment property count as a first home? 

    How to Invest Money After Selling Your Home 

    What if you own a home of your own, and you’re thinking about selling it. What should you do with the profits you make from your house sale? 

    Right now, record numbers of properties are selling over their asking price. This means that those selling their home choose to buy a larger, more expensive home or buy a more affordable property to live in and keep the extra cash aside for investment. 

    If you’re looking for a way to invest the spare cash you’re left with after buying another home, investing in property is a great option. 

    Discover more about this idea in our guide to how to invest money after selling your home.

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    How to Invest in Property as a Beginner How to Invest in Property as a Beginner

    How to Get Started With Property Investment 

    How to Invest in Property as a Beginner 

    If you’re a complete beginner to property, and you’re thinking of investing in this lucrative asset, keep the following tips in mind: 

    1. Determine your goals: What is it you want to get out of investing in property? 
    2. Choose a rental property strategy: Are you interested in student/residential buy to let? Buy to sell? Or an alternative strategy? 
    3. Familiarise yourself with the costs involved: Do you know about the taxes and general costs involved with owning a rental property? 
    4. Understand finance options: Have you thought about whether you want to fund your investment with a buy to let mortgage? 
    5. Consider hiring a property manager: Do you want a hands-off venture? Then a property manager is something to consider. 
    6. Focus on rental yields and capital growth: Do you understand the importance of rental yields and capital growth for high returns? 
    7. Research the right location to invest in: Do you know about the best places to invest in property in the UK? 
    8. Start small when building a portfolio: Are you looking to build a portfolio of properties? Then be sure to start small and climb the property ladder. 
    9. Save money with off-plan investment: Want to make your investment as affordable as possible without sacrificing returns? Off-plan property is for you. 
    10. Invest with a property investment company: Want to access the best deals, get help with every stage of the purchase process, and invest in the best opportunities on the market? Consider a specialist company for your venture. 

    Read about each of these property tips in more detail with our guide on how to invest in rental property as a beginner.

    Be sure to also read our blog post on how to start investing in property in 2021/2022 for more information. 

    How to Buy an Investment Property With a Partner How to Buy an Investment Property With a Partner

    How to Buy an Investment Property With a Partner 

    For some investors, buying an investment property solo can be too expensive, leading them to consider buying a property with a partner. 

    Partnering up with a friend or family member could seem like an attractive option for those with smaller budgets, and there are definitely pros to this, such as: 

    • A larger investment budget due to combined income. 
    • Combined knowledge from two investors. 

    But, there are also some cons, including: 

    • Potential disputes and fallouts with your partner. 
    • Responsibility for the entire mortgage if your partner was unable to pay. 

    In our guide to investing in property with a partner, we cover all of the pros and cons of this method of buying property for investment. We also list some tips on how to make things go smoothly if you decide on this method. Click the link now to have a read. 

    Where to Invest in Property 

    When you invest in property, the location of the property you’re purchasing is key. 

    While the entire UK property market has been seeing record-breaking growth with house prices and average rents, some parts of the country have performed better than others, offering enhanced rental return potential and capital appreciation. 

    The following cities and towns are some of those considered property hotspot areas in the UK: 

    • Liverpool 
    • Manchester 
    • Birmingham 
    • Slough 
    • Luton 

    This is because each area offers growing property prices and rental prices, resulting in attractive rental income and capital growth. 

    If you’d like to read a more detailed summary of the best places to buy property in the UK, read our complete guide now by clicking the link. 

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      The Next Steps After Investing in Real Estate

      The Next Steps After Investing in Real Estate 

      How to Buy More Investment Properties

      For many people, the ultimate goal is to build a lucrative portfolio of investments. Knowing how to do this is vital. 

      If you want to buy more investment properties and kickstart your property empire, read our blog post on how to buy more than one investment property for must-have information. 

      How to Manage Your Investment Property

      Do you plan on managing your property yourself? Will you hire a property management company to help you? Or, have you not thought about it yet? 

      Whatever stage you’re at, check out our guide on how to manage your rental property to find out everything you need to know. 

      RWinvest Can Help You Begin Your Property Journey

      Want to invest in property? As one of the top property investment companies in the North West, we can help you make your investment dreams a reality. So why invest with us? 

      We offer our clients properties in only the very best UK areas, offering high rental returns and capital appreciation. Many of our past properties have grown in value significantly. 

      Youre sure to find a price that suits you with RWinvest, and our payment plans make funding your purchase more achievable. This allows you to split the overall cost into two or three payments. 

      From questions on how much capital growth is predicted in a region to queries about the buy to let process, were with you every step of the way and here to advise you. Our team of property consultants, client care professionals, and post-sales agents will take your venture from enquiry to exchange. 

      We won North West Property Company of the Year in 2020 and have since been nominated for several prestigious awards. With over 17 years of industry experience, were a company you can trust. 

      We boast thousands of five-star customer reviews across Trustpilot and Google and have a strong track record of helping investors meet their financial goals with property. 

      Chat to an agent today to begin your investment journey. 

      We Offer the Best Opportunities

      We offer our clients properties in only the very best UK areas, offering high rental returns and capital appreciation. Many of our past properties have grown in value significantly. 

      We Offer Affordable Payment Plans

      Youre sure to find a price that suits you with RWinvest, and our payment plans make funding your purchase more achievable. This allows you to split the overall cost into two or three payments. 

      We Can Assist You With the Investment Process

      From questions on how much capital growth is predicted in a region to queries about the buy to let process, were with you every step of the way and here to advise you. Our team of property consultants, client care professionals, and post-sales agents will take your venture from enquiry to exchange. 

      We’re Experienced and Industry-Recognised

      We won North West Property Company of the Year in 2020 and have since been nominated for several prestigious awards. With over 17 years of industry experience, were a company you can trust. 

      We Have a Strong Track Record

      We boast thousands of five-star customer reviews across Trustpilot and Google and have a strong track record of helping investors meet their financial goals with property. 

      Chat to an agent today to begin your investment journey. 

      RWinvest RWinvest

      Helpful Links 

      Who Is RWInvest? – Find out more about who we are and what we do. 

      The Complete Guide to Off-Plan Property – Interested in off-plan investment? Find out more here. 

      The Ultimate Buy to Let Guide – Discover more about buy to let investment with our ultimate guide. 

      Amy Jackson
      Amy Jackson
      Property Editor

      Amy Jackson is the property editor at RWinvest. Amy has over three years of experience working in the property content sector and has a keen eye for finding the latest news, statistics, and must-have property investment information.

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