Knowledge is power. At RW Invest, we pride ourselves on providing our clients with results and knowledge. Below are our top 10 tips to creating a successful investment strategy that will allow you to reap the benefits for years to come.
1. BUY AT THE RIGHT PRICE
In the world of property, profits are made when you buy, not when you sell. Buying at the right price comes down to one simple rule: do your research. The most important indicator of a property’s value is the recent sold prices of similar properties.
There are a number of online resources you can use to research recent sold prices. Contact our team for more details.
2. ENSURE AN ATTRACTIVE NET YIELD
Setting yourself up correctly will ensure there are no headaches down the road. If you are looking at a buy-to-let property in the UK, then a minimum benchmark net income of 6% will ensure you cover your monthly costs and protect yourself against slight adjustments in the market.
If you begin with a net income of less than 5% you risk buying a property that may require additional funds to cover costs.
3. LOCATION, LOCATION, LOCATION
It is the mantra we live by. The location of a property is critical in determining the success of your buy-to-let investment. Consider the property’s proximity to schools, transport links, retail centres, restaurants and parks. Are these amenities relevant to the tenants you hope to attract?
If you identify young professionals as your target market, look at the proximity of tube/rail stations, restaurants and supermarkets. Get this wrong and your property may collect dust for longer than you can afford.
4. FIND DEVELOPERS YOU CAN TRUST
The first question you should ask a developer is “What have you built before?”. Purchasing from a company with a proven track record will eliminate any concerns regarding the long-term viability of your investment.
At RW Invest, we only work with the most experienced developers and management companies in the UK, ensuring peace of mind for all our customers.
5. FIND THE RIGHT UK PROPERTY SOLICITOR
Finding a reputable and experienced UK conveyancer (property solicitor) to assist in the purchase of your property is crucial to ensuring the smoothest ride possible with your investment. Always make sure your conveyancer has listed experience in your particular field.
A conveyancer with experience in residential property may not have the required expertise to handle work on commercial or student properties.
6. ONLY BUY FROM REGISTERED, ESTABLISHED AGENTS
This may seem obvious but the pitfalls of ignoring this are incredibly dangerous. Purchasing from an established estate agent who is registered in the UK with organisations such as the Property Ombudsman will protect you against any of the dangers that non-registered agents may face.
RW Invest is a full member of Trading Standards, the Information Commissioner’s Office and the UK Property Ombudsman Scheme, giving our clients the confidence to invest with vigour.
7. MANAGING YOUR PROPERTY
The decision to look after the property yourself or engage the services of a managing agent will be determined by your circumstances.
If your life is already hectic or you live overseas, we recommend employing a managing agent to ensure your property and the tenants are taken care of in your absence.
The majority of letting agents also offer property management services but always do due diligence in making sure of this.
8. PLAN FOR THE LONG TERM
A long-term investment is a smart investment. You should look at commercial, buy-to-let and student properties as long-term investments that will make you money both now and later.
The most essential factor is preparing for the unforeseen. Leaving funds aside for maintenance, repairs or to cover the mortgage during periods without tenancy will ensure you are in a strong position for the future.
With the right advice and the necessary financial planning, you will be positioned to ride out any bumps along the way, ensuring your investment is delivering profits for years to come.
9. DIVERSIFY YOUR PORTFOLIO
Don’t put all your eggs in one basket! Spreading your property purchases across various areas and targeting different markets will protect yourself from localised turbulence, ensuring a safe and secure investment portfolio.
10. KNOW YOUR TARGET MARKET
Making a sound investment begins with knowing your market. This is crucial in deciding the type of property, the location and the infrastructure surrounding it. The most valuable resource for this will be your estate agent whose business it is to know the nuances of the local market.
At RW Invest, we offer property investments across the UK providing detailed local knowledge through our use of regional agents who are best placed to evaluate the strengths and weaknesses of your potential investment.