Top Tips for Getting Started in Property Investment: 28 Property Investing Tips

Thinking of buying an investment property? Here are the top property investment tips that you should know if you want to learn how to become a property investor.

Top Tips for Getting Started in Property Investment

Buy to let property investment is one of the most lucrative ways to make the most out of your savings, and more and more people are now seeking out advice on getting into property investment.

If you’re keen to learn how to become a property investor, these top tips for property investment are designed to prepare you for getting started on this profitable journey and give you the best knowledge and skills on how to invest in property as effectively as possible.

There are several things to consider when thinking about how to start investing in property. Whether you’re asking, “what are the tax implications of property investment?”, “how much money do you need to invest in property?” or “how do I start a property portfolio of my own?”, we’ve got you covered.

In our guide to property investment, we talk about everything from the best areas to invest in to the different property investment strategies you should consider.

In a nutshell, this guide contains the most essential property investment tips and pieces of property investment advice that you need to know before starting out.

So what are you waiting for? If you’re looking for tips on the best ways to invest in real estate, look no further than our in-depth property investment guide. Keep reading for 28 detailed tips on how to invest in property, containing new and updated information and statistics for 2021.

What will you find in this property investment guide?

– Tips on investing in property for beginners to help you learn how to become a property investor easily and effectively.

– Information on the different stages involved with investing in property.

– Details on how to invest in property to get the best return on investment.

– Property investment advice about the best properties to invest in and the best buy to let areas in the UK.

– Advice on how to start property investment with a range of different budgets.

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Section 1: Are You Ready to Invest?

1. Make Sure You’re Ready for Property Investing 

So, you’ve heard about property investment being one of the best ways to build income and increase wealth, and you want to get involved.

Maybe you’re sitting on a large sum of money and want to find a way to continue making money further down the line and reach long-term financial goals.

Or, perhaps you’re familiar with investing your money and have previously invested in other avenues like stocks and shares or cryptocurrency. You’ve likely heard how property investing, particularly in today’s market, is a less risky and more resilient route to take.

Whatever your reason is for wanting to become a property investor, the best place to start is to make sure you’re actually ready to invest.

Ask yourself the following questions that everyone looking to enter the property investment business should ask themselves before moving on any further.

Does Property Investing Make Financial Sense for You Right Now?

If you want to start investing in property, you need to be sure that doing so makes financial sense.

That means really thinking about whether you can afford an investment right now. If not, consider whether it might be better to invest at a later date.

The minimum amount you should have available if you want to invest in property is £50,000.

With this amount, you could put a deposit down for a buy to let mortgage, pay your first installment on a property with a payment scheme, or even pay for an entire property outright if you can find one with this price.

Even after paying for the property, however, you’ll need to think about additional costs such as the maintenance of the property and taxes, and of course mortgage repayments if you decide to use a buy to let mortgage.

Your investment is a business venture, so be sure to think of it in that way by thinking about your budget and planning whether you’re ready for the financial commitment.

Prepare to do the research Prepare to do the research

Are You Prepared to Do the Research?

Investing in property requires a lot of research. While buying a property with the help of a property investment company makes the process easier, you will want to understand everything there is to know about your new venture.

One of the first things you should do before investing in property is to consider whether you’re prepared to carry out the research required to be a successful property investor.

This guide containing detailed property investment tips is a great place to start, so be sure to read through each of our points and learn more about how to become a property investor.

However, even once you’ve read this guide, further research and reading are encouraged to better understand the property market and current market trends and learn fresh new property investment advice.

Do You Accept a Level of Risk? Do You Accept a Level of Risk?

Do You Accept a Level of Risk?

While property investment is considered one of the lowest risk investments available, there are still some risks that property investors should prepare for.

However, as businesswoman Mellody Hobson once said, “The biggest risk of all is not taking one.”

The investors that benefit the most are those who have accepted some level of risk. If you’re not currently ready to take the risks that can come with property investment, you should think about whether or not now is the best time to invest.

We’ll detail some of the risks involved with investing in property in the second tip of our property investment guide.

2. Know the Risks

Although getting started in property can be a rewarding venture and a fantastic way to reach your financial goals, there is still some risk involved.

While not as high-risk as other investment strategies such as buying stocks and shares, getting started in property isn’t always a guaranteed road to success.

Going into a venture with some uncertainty surrounding it can make you question, ‘how do I invest in property and make sure it’s a success?’.

If you’re wondering how to start property investment in the safest and most sensible way possible, it’s crucial to know about the risks involved such as loss of income and negative growth.

This way, you can work out a strategy to avoid your investment being affected and improve your chances of a positive venture.

Here are some common risks involved with property investment.

One of the main risks associated with property investment is that your property could decrease in value depending on the state of the property market.

While this is always possible, conducting extensive research into property market predictions can help you avoid this.

Although predictions can change depending on a fluctuating market, research suggests that the UK will see positive house price growth over the next five years, particularly in the North West.

Purchasing a property in a UK property hotspot will reduce the likelihood of a risky investment.

You should also think about whether any regeneration is set to occur in the area surrounding the property, as this could further boost growth.

Another risk that those investing in property need to be aware of is unreliable tenants.

Tenants that struggle to pay their rent on numerous occasions can hurt your rental income, or even worse — the tenant could stop paying rent altogether.

Bad tenants are every landlord’s worst nightmare, but the good news is that with a bit of preparation and some insurance, this risk can be avoided.

Be sure to conduct thorough tenant screening, whether you do this yourself or use a management company.

Tenant screening reveals things like employment history and runs credit checks so that landlords can be made aware of any financial issues.

You could also state that you’ll charge a late fee on delayed rent payments in your landlord agreement, making them aware of the exact date that rent is due.

While property is not a completely safe investment, it can be a lot less risky than other asset classes.

By identifying the risks involved and creating a strategy to avoid these, you can help to minimise any potential hazards and set yourself up for a strong venture.

Investment properties are worth looking into if you want to generate an ongoing passive income.

This type of investment can also offer you the chance to make big returns later in life.

To get the most out of property investment, research the market, and be aware of property tips that can help you avoid any pitfalls.

Property investment can be a very successful venture for many people, especially those savvy to market changes and pick and choose the right opportunities.

Successful property investors are knowledgeable, patient, focused, and decisive — with an ability to spot the best investments.

Property Market Fluctuations

One of the main risks associated with property investment is that your property could decrease in value depending on the state of the property market.

While this is always possible, conducting extensive research into property market predictions can help you avoid this.

Although predictions can change depending on a fluctuating market, research suggests that the UK will see positive house price growth over the next five years, particularly in the North West.

Purchasing a property in a UK property hotspot will reduce the likelihood of a risky investment.

You should also think about whether any regeneration is set to occur in the area surrounding the property, as this could further boost growth.

Unreliable Tenants

Another risk that those investing in property need to be aware of is unreliable tenants.

Tenants that struggle to pay their rent on numerous occasions can hurt your rental income, or even worse — the tenant could stop paying rent altogether.

Bad tenants are every landlord’s worst nightmare, but the good news is that with a bit of preparation and some insurance, this risk can be avoided.

Be sure to conduct thorough tenant screening, whether you do this yourself or use a management company.

Tenant screening reveals things like employment history and runs credit checks so that landlords can be made aware of any financial issues.

You could also state that you’ll charge a late fee on delayed rent payments in your landlord agreement, making them aware of the exact date that rent is due.

Is Property a Safe Investment?

While property is not a completely safe investment, it can be a lot less risky than other asset classes.

By identifying the risks involved and creating a strategy to avoid these, you can help to minimise any potential hazards and set yourself up for a strong venture.

Are Investment Properties Worth It?

Investment properties are worth looking into if you want to generate an ongoing passive income.

This type of investment can also offer you the chance to make big returns later in life.

To get the most out of property investment, research the market, and be aware of property tips that can help you avoid any pitfalls.

How Successful Are Property Investors?

Property investment can be a very successful venture for many people, especially those savvy to market changes and pick and choose the right opportunities.

Successful property investors are knowledgeable, patient, focused, and decisive — with an ability to spot the best investments.

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3. Develop the Right Mindset

4. Understand What’s Involved

Before getting started with buy to let, it’s essential that you fully understand what’s involved with a property investment venture.

Investing in the UK property market may be promising, but it also requires a lot of preparation.

In this section of our property investment guide, you can find out some of the most common things to consider and understand before making a buy to let purchase.

Learn About the Rules of Investing in the UK Property Market Learn About the Rules of Investing in the UK Property Market

Learn About the Rules of Investing in the UK Property Market

When investing in the UK property market, you need to adhere to certain rules and follow different legal requirements.

One of the most common legal requirements involved with buy to let investment is that you’ll need to pay attention to tenancy laws when renting a property out to a tenant.

This includes offering a tenancy agreement and keeping any tenant deposits in a protected tenancy deposit scheme.

Other rules for buying an investment property include keeping up with any required tax payments and deciding between a freehold or leasehold property purchase.

We’ll cover buy to let taxes a little further on in this guide. To read about freehold vs. leasehold, take a look at our in-depth guide. 

Think About the Right Time to Invest in Property

On a personal level, the right time to invest in property is when you have enough money available to do so.

Being financially stable is one of the most important things to consider before you go ahead with an investment, so make sure you take the time to fully assess your finances before beginning your buy to let journey.

When investing in the UK property market, the best time to invest in property is when the market is at its highest-performing level.

Right now, the UK market is looking highly promising due to predictions of increased property price growth over the coming years.

With property prices still being affordable in many UK areas, those considering making an investment should do so soon, before average house prices rise.

Section 2: Gain an Understanding of Property Investment

5. Understand the Basics

Now that you’ve taken time to think about whether you’re ready for investing in property and you know about the risks and what’s involved, the next step is to make sure you fully understand the basics of property investment before getting into the property business.

The demand from those interested in buying rental property in the UK is higher than ever before, with a growing need for high-quality rental accommodation ensuring a steady stream of tenants.

When it comes to investing in properties, considering the buy to let market is one of the most important property tips to find the best property investments in the UK for 2019, 2020, 2021, and beyond.

Here are some answers to commonly asked questions about investing in property.

So, what is an investment property? 

An investment property is a property that is purchased to generate a return on investment.

The two ways people benefit from making an investment in property are regular rental returns and returns from the future resale of a property that’s grown in value.

There are different types of investment property depending on the strategy the investor chooses.

The most popular strategy, which we’ll cover in more detail within one of our upcoming property tips, is buy to let.

There are different options for buy to let, including residential lets, holiday lets, HMO’S and more. Another common strategy is to buy to sell, which will typically involve residential property.

A property investor is somebody who purchases one or several properties for the purpose of renting them out or selling them for a higher cost.

The role of a property investor is usually carried out alongside an additional career, but making an investment in property can sometimes become a full-time career in itself.

Those interested in investing in properties can do so in several ways. Some people choose to buy to sell property, while others select buy to let.

Buy to let is where you purchase a property to let it out to a tenant and is one of the most popular property investment strategies.

Without considering buy to let, you’re missing out on the potential for long-lasting returns rather than just a one-off payment. If you’re thinking about how to invest in property, don’t ignore your buy to let options.

Property investment can be an excellent idea for those who want to generate additional income. Buy to let property investment can bring revenue in the form of rental returns while also having the potential to bring attractive capital growth returns if your property’s value grows over time.

Here are some of the benefits of property investment in more detail.

You Generate Regular Rental Returns

Unlike other investment strategies, buy to let property investment allows investors to receive monthly or quarterly rental returns from tenants.

This is great for those who want to see regular returns from their investment, which they can either save, put towards further investments, or use as additional income.

Capital Appreciation Returns Can be High

Capital appreciation in property investment can be equally impressive, with certain areas of the UK reporting record house price rises.

When the property market experiences growth, you could see your investment property grow in value significantly. An example would be if you’d bought a UK property back in February 2011 and sold it in February 2021.

Say the property price back in 2011 was £166,415, which was the average UK house price at the time according to the Land Registry House Price Index, and you sold it for the latest average UK house price of £250,341 as of February 2021.

In this scenario, you would have made a profit of £83,926 from your investment, on top of the money you had made through rental returns. Capital growth returns become even more attractive when you invest in high-performing areas.

It’s a Great Way to Earn Passive Income

Because property investment is often a hands-off investment that doesn’t require you to do a lot of work to maintain it, investing in property is a great way to earn passive income.

With property investments, you can earn extra money while working for your day-to-day career or carrying out daily commitments.

The popularity of property investment has led many people to question the potential of a property compared to a pension when saving for retirement.

In the great pension vs property debate, many people choose to combine their investment property venture with a pension for maximum returns. 

If you want to get into property investment, there are certain things you need to consider. 

Besides making sure if investing in properties is right for you, you should ask yourself the following questions: What do I need to buy an investment property, and where is the best place to buy investment property?

Research the main elements of property investment, and decide which location offers the best opportunities for capital growth and rental returns.

Don’t worry if you’re not too sure about the best property investment areas right now, as we’ll cover this in more detail later on in our property investment guide.

Along with capital growth and rental returns, if you want to know how to become a successful property investor, you’ll need to focus on trends like rental demand.

The number of people in the UK living in rental accommodation is higher than ever, with major increases over the last few years.

Due to a lack of social housing and the difficulties faced by people wanting to buy their first home, there are a record number of people looking for rental accommodation, leaving more opportunities for buy to let investors.

Being well informed on rental yields, demand, and capital growth is essential with property investment, ensuring you can make the best and most profitable choices as you begin your buy to let journey.

Being clear on these factors and knowing whether or not property investment is suitable for you is the best way to start investing in property.

Resources like our property investment guides are ideal for understanding what makes a good property investment and how to find the best investment for you.

If you want to purchase a buy to let investment property, you can either do this by buying a property with the help of a property investment company or investing privately.

You will then have the choice of either paying the property’s price in full, splitting the cost into smaller payments or using a buy to let mortgage.

This decision will largely depend on the type of property you want to invest in and, if applicable, the property investment company you use.

In recent years the buy to let market has taken a few knocks, with changing tax policies and potential price rises.

However, the benefits of property investment far outweigh the drawbacks. The demand for rental property in the UK is higher than ever before, with a growing need for high-quality rental accommodation ensuring a steady stream of tenants.

When choosing an investment property, you should focus on high-growth areas, think about the future, seek out the highest rental yields, and consider the wants and needs of your tenant. Look for opportunities with the best potential for long-term success.

Choosing an investment property is a crucial step of your investor journey and one of the key property investment tips for UK investors to keep in mind.

By staying vigilant to the property market and thinking about what’s on offer, you give yourself a better chance of avoiding any potential risks.

What Is an Investment Property?

So, what is an investment property? 

An investment property is a property that is purchased to generate a return on investment.

The two ways people benefit from making an investment in property are regular rental returns and returns from the future resale of a property that’s grown in value.

There are different types of investment property depending on the strategy the investor chooses.

The most popular strategy, which we’ll cover in more detail within one of our upcoming property tips, is buy to let.

There are different options for buy to let, including residential lets, holiday lets, HMO’S and more. Another common strategy is to buy to sell, which will typically involve residential property.

What Is a Property Investor?

A property investor is somebody who purchases one or several properties for the purpose of renting them out or selling them for a higher cost.

The role of a property investor is usually carried out alongside an additional career, but making an investment in property can sometimes become a full-time career in itself.

Can I Invest in Property?

Those interested in investing in properties can do so in several ways. Some people choose to buy to sell property, while others select buy to let.

Buy to let is where you purchase a property to let it out to a tenant and is one of the most popular property investment strategies.

Without considering buy to let, you’re missing out on the potential for long-lasting returns rather than just a one-off payment. If you’re thinking about how to invest in property, don’t ignore your buy to let options.

Is it a Good Idea to Invest in Property?

Property investment can be an excellent idea for those who want to generate additional income. Buy to let property investment can bring revenue in the form of rental returns while also having the potential to bring attractive capital growth returns if your property’s value grows over time.

Here are some of the benefits of property investment in more detail.

You Generate Regular Rental Returns

Unlike other investment strategies, buy to let property investment allows investors to receive monthly or quarterly rental returns from tenants.

This is great for those who want to see regular returns from their investment, which they can either save, put towards further investments, or use as additional income.

Capital Appreciation Returns Can be High

Capital appreciation in property investment can be equally impressive, with certain areas of the UK reporting record house price rises.

When the property market experiences growth, you could see your investment property grow in value significantly. An example would be if you’d bought a UK property back in February 2011 and sold it in February 2021.

Say the property price back in 2011 was £166,415, which was the average UK house price at the time according to the Land Registry House Price Index, and you sold it for the latest average UK house price of £250,341 as of February 2021.

In this scenario, you would have made a profit of £83,926 from your investment, on top of the money you had made through rental returns. Capital growth returns become even more attractive when you invest in high-performing areas.

It’s a Great Way to Earn Passive Income

Because property investment is often a hands-off investment that doesn’t require you to do a lot of work to maintain it, investing in property is a great way to earn passive income.

With property investments, you can earn extra money while working for your day-to-day career or carrying out daily commitments.

The popularity of property investment has led many people to question the potential of a property compared to a pension when saving for retirement.

In the great pension vs property debate, many people choose to combine their investment property venture with a pension for maximum returns. 

How to Get Into Property Investment

If you want to get into property investment, there are certain things you need to consider. 

Besides making sure if investing in properties is right for you, you should ask yourself the following questions: What do I need to buy an investment property, and where is the best place to buy investment property?

Research the main elements of property investment, and decide which location offers the best opportunities for capital growth and rental returns.

Don’t worry if you’re not too sure about the best property investment areas right now, as we’ll cover this in more detail later on in our property investment guide.

Along with capital growth and rental returns, if you want to know how to become a successful property investor, you’ll need to focus on trends like rental demand.

The number of people in the UK living in rental accommodation is higher than ever, with major increases over the last few years.

Due to a lack of social housing and the difficulties faced by people wanting to buy their first home, there are a record number of people looking for rental accommodation, leaving more opportunities for buy to let investors.

Being well informed on rental yields, demand, and capital growth is essential with property investment, ensuring you can make the best and most profitable choices as you begin your buy to let journey.

Being clear on these factors and knowing whether or not property investment is suitable for you is the best way to start investing in property.

Resources like our property investment guides are ideal for understanding what makes a good property investment and how to find the best investment for you.

How Do I Buy an Investment Property?

If you want to purchase a buy to let investment property, you can either do this by buying a property with the help of a property investment company or investing privately.

You will then have the choice of either paying the property’s price in full, splitting the cost into smaller payments or using a buy to let mortgage.

This decision will largely depend on the type of property you want to invest in and, if applicable, the property investment company you use.

In recent years the buy to let market has taken a few knocks, with changing tax policies and potential price rises.

However, the benefits of property investment far outweigh the drawbacks. The demand for rental property in the UK is higher than ever before, with a growing need for high-quality rental accommodation ensuring a steady stream of tenants.

How Do I Choose an Investment Property?

When choosing an investment property, you should focus on high-growth areas, think about the future, seek out the highest rental yields, and consider the wants and needs of your tenant. Look for opportunities with the best potential for long-term success.

Choosing an investment property is a crucial step of your investor journey and one of the key property investment tips for UK investors to keep in mind.

By staying vigilant to the property market and thinking about what’s on offer, you give yourself a better chance of avoiding any potential risks.

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6. Decide Whether You Want to Invest in the UK or Abroad

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7. Choose Your Property Investment Strategy: Buy to Let vs. Buy to Sell

With property investment, there are many different property investor strategies out there, with more common strategies like buy to let, and more niche strategies like rent to rent.

The two main types of investment strategy – buy to let and buy to sell – tend to offer the best returns and are an all-around favored choice for investors.

When it comes to investing in property for the most lucrative long-term returns, the most common strategy is buy to let.

However, it’s also a good idea to know about the alternative strategy, buy to sell, before getting started.

This way, you can work out which option for buying an investment property suits you better.

What Is Buy to Let?

Buy to let is when an investor purchases a property for the purpose of renting it out and receiving a rental income.

Buy to let is one of the most common property investment strategies due to the potential to make large amounts of money over a long period.

The rental market in the UK is thriving, with a high demand for quality rental properties.

By owning a rental property, buy to let investors can benefit from high rental demand and lucrative returns.

What Is Buy to Sell? What Is Buy to Sell?

What Is Buy to Sell?

Buy to sell, or ‘flipping property’, is a property investment strategy that involves purchasing a property that may need refurbishment and improvements and then selling it for an increased price once work has been completed.

This is also referred to as property development, as property developers will often buy a house or apartment and completely transform it, boosting the property’s value.

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Which Is the Better Property Investment Strategy: Buy to Let or Buy to Sell? Which Is the Better Property Investment Strategy: Buy to Let or Buy to Sell?

Which Is the Better Property Investment Strategy: Buy to Let or Buy to Sell?

To work out whether buy to let or buy to sell is the right property investment strategy for you, you should think about your long-term goals and reasons for making an investment in property.

Some investors consider getting into property as a way to save for a more lucrative retirement, in which case they may not need to see the full extent of their returns for several years.

Other property investors, however, would rather generate a lump sum of money more quickly.

For those looking at more long-term growth for their investment, buy to let is the best strategy to focus on as this allows you to make consistent rental income over time and then make a profit from the sale of the property.

Buy to sell strategies only offer one type of return which is an income generated from the sale of the property.

This is beneficial to those who want to earn their maximum returns quickly, but not for those looking to get the most out of their investment over a longer period.

For this reason, a lot of people consider buy to let as the best property investment strategy, allowing investors to make two types of returns and maximise their earning potential.

Can You Invest in Property Without Buying a House or Apartment? Can You Invest in Property Without Buying a House or Apartment?

Can You Invest in Property Without Buying a House or Apartment?

Some people are interested in the idea of property investment but aren’t keen on actually buying a house or apartment to rent out or sell for profit.

One way you can invest in property without actually buying property is through REITs. Otherwise known as real estate investment trusts, REITs are companies that own, finance or operate investment properties.

REITs are commonly traded like stocks, allowing investors to purchase a share in a property without actually buying the property themselves.

Many investors prefer this investment method as it can be an excellent way to build a diverse portfolio in a more hands-off way.

However, because it’s a stocks and shares investment, investing in REITs is considered more high-risk than buy to let or buy to sell property investment.

If you have the funds available to do so, buying an investment property is the best way to get started with property investment and generate the most attractive returns.

8. Explore Different Buy to Let Strategies

If you’ve chosen buy to let property investment in the UK as your strategy of choice, you’re on track to generate some lucrative returns from a strong investment method.

There are, however, different property investment strategies to consider when you first get started with buy to let.

Before considering all the steps involved with property investment, you first need to establish the best buy to let strategy for you and explore the different options.

The most common types of buy to let are residential and student property investments, but some other types of strategies are also worth considering.

If you’re looking for the best ways to invest in real estate, here is a guide to rental property investment strategies that are important to explore when it comes to how to start investing in property.

Traditional buy to let is when an investor purchases a residential or student property which they’ll let out to tenants to regularly generate an income.

Residential investment property purchases are also referred to as ‘professional single lets.’

Those who opt for a traditional buy to let investment strategy are likely to purchase an apartment rather than a house due to the lower costs and higher demand, especially in city-centre locations.

The reason why this is often considered the best buy to let strategy and the best way to invest in property is because of the benefits involved.

When you do the appropriate research and planning, traditional buy to let can provide you with attractive rental returns and plenty of tenant demand.

With this type of investment, you’re also more likely to benefit from increased capital growth potential, providing you with an attractive return on your investment when you decide to sell the property.

Find out more about buy to let investment with the buy to let episode of our RWinvest property podcast. 

Pros of Traditional Buy to Let Strategies 

  • Lucrative returns through both rental income and capital growth.
  • Regular rental demand all year round.
  • Easy to get started with.
  • Usually easy to secure a buy to let mortgage.
  • Deals offered by developers.

Cons of Traditional Buy to Let Strategies

  • Possible void periods if investing in the wrong areas.
  • Holiday Lets for Property Investors

Another buy to let property investment strategy that many people choose is to purchase a holiday let.

Holiday lets are properties that are owned to be rented out to holidaymakers on a short-term basis.

This strategy can be beneficial if the property is based in a popular area, such as a seaside town, as holiday lets rely on constant demand.

However, investors who lose out on demand for their holiday rental can lose income easily.

It’s also harder to get a mortgage for this type of buy to let property, and there’s a lot of administration involved compared to traditional buy to let investments.

Pros of Holiday Let Buy to Let Strategies 

  • High potential rental returns for the right property.
  • Can also serve as a holiday home when needed.

Cons of Holiday Let Buy to Let Strategies 

  • May experience void periods during off-season months.
  • Difficult to secure a mortgage.
  • Lots of administrative work and marketing involved.

Along with student or residential property investment strategies, another option is HMO investment.

This is similar to a more traditional buy to let strategy because you own a property you’re renting out to tenants.

The difference is that by investing in HMO properties, you’re able to rent to multiple groups of tenants within the one building – that’s why they’re called Houses of Multiple Occupancy.

But are HMOs a good investment? Owning HMO investment properties can come with some benefits, including increased cash flow, while disadvantages like more costly and time-consuming management turn many investors away.

If you’re considering an HMO investment, it’s essential to read up on HMO investment properties to make a more informed decision.

Pros of HMO Buy to Let Strategies 

  • High potential rental returns.
  • Low chance of void periods due to multiple tenants paying rent.

Cons of HMO Buy to Let Strategies 

  • Costly and time-consuming management.
  • Difficult to obtain a mortgage.
  • More regulations for property investors to comply with.

Hotel property investments are another option for those researching different property investment strategies.

Hotel investment in the UK means purchasing a hotel room and generating returns thanks to guests staying in the hotel.

This works similarly to the more typical type of property investment but with shorter tenancies.

Like HMO’s, there are pros and cons to hotel investments.

One of the main reasons that some people consider hotel investments as the best property investment strategy is that you’re able to generate high rental yields due to the cost of hotel stays.

The downsides, however, are that you’ll need to ensure that the hotel you invest in is popular enough to bring in a lot of demand.

You also have less control over a hotel room investment since you don’t own the entire property, leaving you at risk if the company was to fail.

Pros of Hotel Investment Buy to Let Strategies 

  • High rental income from more costly hotel stays.

Cons of Hotel Investment Buy to Let Strategies 

  • Void periods if the hotel isn’t popular.
  • Less control due to not owning the entire property.

When trying to decide on the best way to invest in property, you should think about your main goals for buy to let and whether or not each strategy reflects them.

While hotel investments and investing in HMO properties can be a good route to take, these are not usually considered the best type of investment property compared to traditional residential and student buy to let.

To fully take advantage of all that’s on offer from buy to let, residential and student property investments are a solid choice to make when getting into property investment and are recognised as the best property investment strategies.

Traditional Buy to Let

Traditional buy to let is when an investor purchases a residential or student property which they’ll let out to tenants to regularly generate an income.

Residential investment property purchases are also referred to as ‘professional single lets.’

Those who opt for a traditional buy to let investment strategy are likely to purchase an apartment rather than a house due to the lower costs and higher demand, especially in city-centre locations.

The reason why this is often considered the best buy to let strategy and the best way to invest in property is because of the benefits involved.

When you do the appropriate research and planning, traditional buy to let can provide you with attractive rental returns and plenty of tenant demand.

With this type of investment, you’re also more likely to benefit from increased capital growth potential, providing you with an attractive return on your investment when you decide to sell the property.

Find out more about buy to let investment with the buy to let episode of our RWinvest property podcast. 

Pros of Traditional Buy to Let Strategies 

  • Lucrative returns through both rental income and capital growth.
  • Regular rental demand all year round.
  • Easy to get started with.
  • Usually easy to secure a buy to let mortgage.
  • Deals offered by developers.

Cons of Traditional Buy to Let Strategies

  • Possible void periods if investing in the wrong areas.
  • Holiday Lets for Property Investors

Holiday Lets

Another buy to let property investment strategy that many people choose is to purchase a holiday let.

Holiday lets are properties that are owned to be rented out to holidaymakers on a short-term basis.

This strategy can be beneficial if the property is based in a popular area, such as a seaside town, as holiday lets rely on constant demand.

However, investors who lose out on demand for their holiday rental can lose income easily.

It’s also harder to get a mortgage for this type of buy to let property, and there’s a lot of administration involved compared to traditional buy to let investments.

Pros of Holiday Let Buy to Let Strategies 

  • High potential rental returns for the right property.
  • Can also serve as a holiday home when needed.

Cons of Holiday Let Buy to Let Strategies 

  • May experience void periods during off-season months.
  • Difficult to secure a mortgage.
  • Lots of administrative work and marketing involved.

HMO Investment

Along with student or residential property investment strategies, another option is HMO investment.

This is similar to a more traditional buy to let strategy because you own a property you’re renting out to tenants.

The difference is that by investing in HMO properties, you’re able to rent to multiple groups of tenants within the one building – that’s why they’re called Houses of Multiple Occupancy.

But are HMOs a good investment? Owning HMO investment properties can come with some benefits, including increased cash flow, while disadvantages like more costly and time-consuming management turn many investors away.

If you’re considering an HMO investment, it’s essential to read up on HMO investment properties to make a more informed decision.

Pros of HMO Buy to Let Strategies 

  • High potential rental returns.
  • Low chance of void periods due to multiple tenants paying rent.

Cons of HMO Buy to Let Strategies 

  • Costly and time-consuming management.
  • Difficult to obtain a mortgage.
  • More regulations for property investors to comply with.

Hotel Investments

Hotel property investments are another option for those researching different property investment strategies.

Hotel investment in the UK means purchasing a hotel room and generating returns thanks to guests staying in the hotel.

This works similarly to the more typical type of property investment but with shorter tenancies.

Like HMO’s, there are pros and cons to hotel investments.

One of the main reasons that some people consider hotel investments as the best property investment strategy is that you’re able to generate high rental yields due to the cost of hotel stays.

The downsides, however, are that you’ll need to ensure that the hotel you invest in is popular enough to bring in a lot of demand.

You also have less control over a hotel room investment since you don’t own the entire property, leaving you at risk if the company was to fail.

Pros of Hotel Investment Buy to Let Strategies 

  • High rental income from more costly hotel stays.

Cons of Hotel Investment Buy to Let Strategies 

  • Void periods if the hotel isn’t popular.
  • Less control due to not owning the entire property.

What Is the Best Type of Property to Invest in?

When trying to decide on the best way to invest in property, you should think about your main goals for buy to let and whether or not each strategy reflects them.

While hotel investments and investing in HMO properties can be a good route to take, these are not usually considered the best type of investment property compared to traditional residential and student buy to let.

To fully take advantage of all that’s on offer from buy to let, residential and student property investments are a solid choice to make when getting into property investment and are recognised as the best property investment strategies.

Section 3: Begin Planning Your Investment

9. Compare Residential vs Commercial Property Investment

Along with buy to let vs buy to sell as a property investment strategy, investors keen to explore all aspects involved with how to invest in property should also think about whether they wish to invest in residential or commercial property.

While residential property is often the first option that comes to mind for many people investing in property, commercial property is another route that many investors consider to gain a sizable rental income.

In this section, we’ll look at some of the benefits and disadvantages of commercial property investment over residential buy to let.

Pros of Commercial Investment vs Residential Investment  Pros of Commercial Investment vs Residential Investment 

Pros of Commercial Investment vs Residential Investment 

Stamp duty land tax charges are lower for commercial property investments.

With commercial rental properties, rent is often paid up to three months in advance, whereas residential buy to let tends only to generate rental income every month.

Due diligence can often be more thorough when securing a tenant on a commercial property, which gives some investors better peace of mind.

Cons of Commercial Investment vs Residential Investment  Cons of Commercial Investment vs Residential Investment 

Cons of Commercial Investment vs Residential Investment 

When a commercial property becomes vacant, it can often take a long time to find a suitable new tenant. This means commercial investment can result in more void periods than residential property investment.

Mortgages are often more costly than they are for residential properties. There are also a limited number of lenders that will deal with investors looking for a specialist commercial mortgage.

It can be more challenging to determine the property value of commercial property compared to a residential property. Therefore, you will usually need to find experts who can advise you on this and offer their input on rental value.

Why Residential Buy to Let is Better Than Commercial Property Investment 

While commercial property investments can be a good option for some, the most suitable and profitable option is usually residential buy to let.

So what are the benefits of residential property investment over commercial property?

For one thing, mortgages are much easier and more affordable for residential properties. There is also a wider range of buy to let mortgage lenders available.

If you’re keen on using a buy to let mortgage to pay for your investment, then you may run into some issues with commercial property investment.

Investment Property Interior - Bedroom Investment Property Interior - Bedroom

Another reason people favour residential property over commercial is that rental yields and strong capital growth are often more easily achievable with residential properties.

An increase in value from renovations, property prices rising, and increased rental demand can contribute massively to residential investment success.

People will always need a place to live, whereas commercial properties can be less reliable in securing long-standing tenants.

Take the recent coronavirus outbreak in 2020. With more and more companies choosing to work from home, sometimes permanently, there has been less demand for commercial office spaces.

On the other hand, residential rental properties experienced a huge surge in demand, with levels of rental demand rising by 21% over the past year.

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10. Start Small

As the saying goes, don’t run before you can walk.

It’s important to view property investment as more of a journey rather than a race to success, and that’s why starting small is one of the best tips for investing in property.

Beginner investors should take their time to research the market, consider their options, and seek professional advice before jumping headfirst into a new venture.

Here are some of the ways investors should start out small with their property purchase.

Don’t Spend What You Can’t Afford  Don’t Spend What You Can’t Afford 

Don’t Spend What You Can’t Afford 

Investing in property can be more affordable than you might think, so looking to spend as little as possible is a good idea for your first investment.

Set yourself a budget based on whatever starting amount you’re comfortable with, and then seek out property investment opportunities that meet or fall below your budget.

You’d be surprised how much you can do with a lower budget, such as £50k, with so many fantastic and affordable investment options available in cities like Liverpool.

Remember to keep quality in mind, as there’s no point investing in a property unless it’s going to generate returns.

Focus on finding properties that not only fit your budget as a first-time property investor but also offer strong potential rental yields and capital growth returns.

Build Your Portfolio Gradually  Build Your Portfolio Gradually 

Build Your Portfolio Gradually 

One of your property investment goals may be to own a property portfolio, and you might have big plans for the property empire you’re going to run further down the line.

However, in line with starting small, you should focus on making one or two property investments at a time until you feel more comfortable with the process and confident in your investment strategy.

Working with a property investment company is an excellent way to ensure you’re making the right investments at the right time.

If you have a set budget and you’re looking to invest in more than one property, property investment companies can offer details on current opportunities that are best suited to a beginner investor.

Building your property investments more gradually is a great tip on how to get into property investment in the best possible way.

11. Set Yourself a Property Investment Budget

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12. Decide Between Off-Plan and Refurbished Properties

Now that you know how to buy your first investment property based on location and tenure, it’s time to talk about off-plan versus refurbished properties.

Whether you decide to invest in an off-plan or a refurbished property will greatly impact the outcome of your investment.

Both off-plan and refurbished property investments offer different benefits depending on what you want from your investment and also some risks. So what does this different terminology mean?

Buying an off-plan house means purchasing a property before it’s been fully completed.

This means that the property is still in the planning or development stages. Off-plan property is a popular investment type due to the potential for capital gains, the lower costs, and the appeal of a new build.

Refurbished properties are typically historical buildings or period properties that have been renovated to meet modern standards.

Refurbished properties can be popular with investors who favour the charm of older builds and want to put their own spin on an existing property.

Those who want to become a property developer will typically focus on this kind of project.

Buying off-plan property can be cheaper than buying a completed property.

Many off-plan projects are offered at a lower rate as a way to attract investors.

These properties can also increase in value before completion, making the potential for capital growth much higher than with other investment types.

There are many reasons why new builds are considered better than older homes.

New build properties tend to be more energy-efficient, have less need for repairs, and are easy to personalise.

These properties also attract tenants who prefer being one of the first to live in a building.

While there are certainly advantages to living in a new build, that’s not to say that older properties don’t also have benefits.

Older builds tend to be more spacious and have more history and character behind them.

One downside, however, is that these properties can require a lot of maintenance and repairs to get them ready for tenancy.

If they haven’t already been refurbished prior to investment, investors will need to pay costly fees on these properties to get them up to scratch.

When you’re thinking of investing in off-plan property, make sure you ask the following questions:

  • Who is the developer behind the off-plan property?
  • What is the buying process for this property?
  • When will the property be completed?

Before buying an off-plan property investment, you need to know how to identify a good developer, make sure the property will be created to a high standard, and ensure your funds are protected.

You should also make sure you understand the buying process for off-plan properties.

Usually, off-plan properties are purchased in different stages, with a percentage of the overall cost being put down each time.

Make sure you’re clear on the amount needed for each stage payment to avoid any issues.

All of our off-plan properties at RWinvest are developed by world-class companies with a track record for success.

We’re available to answer any questions you have about off-plan properties and can guarantee that your funds will be safe throughout the entire investment process.

You’ll also want to find out the expected completion date for the property. While sometimes there are unavoidable delays with the completion of off-plan properties, you will want to have an end date in mind for the project.

Trusted property companies will provide regular construction updates to keep you in the loop.

If you’re struggling to decide whether to invest in an off-plan or refurbished property, it’s important to keep your potential tenants in mind.

Remember that a lot of tenants, particularly young professionals and students, will expect modern features and high-end appliances in a property, along with a well-designed layout.

With the rise of eco property in the UK, many people are also becoming more conscious of living an eco-friendly lifestyle, which makes off-plan new build properties the better choice.

Refurbished properties can offer a more unique investment, with design features that appeal to tenants, while off-plan properties can offer a more modern rental property with newer features.

One downside that comes with off-plan property investment is that investors may feel disappointed with the outcome of their purchase.

To avoid this, be sure to make extensive enquiries before committing yourself to the investment.

Here at RW Invest, we’re one of the UK’s top property investment companies when it comes to providing our clients with as much information as possible.

This includes taking them on tours of the construction site and using virtual reality to give potential investors an idea of the finished property.

What Does Buying an Off Plan House Mean?

Buying an off-plan house means purchasing a property before it’s been fully completed.

This means that the property is still in the planning or development stages. Off-plan property is a popular investment type due to the potential for capital gains, the lower costs, and the appeal of a new build.

What Is a Refurbished Property?

Refurbished properties are typically historical buildings or period properties that have been renovated to meet modern standards.

Refurbished properties can be popular with investors who favour the charm of older builds and want to put their own spin on an existing property.

Those who want to become a property developer will typically focus on this kind of project.

Is Buying Off Plan Cheaper?

Buying off-plan property can be cheaper than buying a completed property.

Many off-plan projects are offered at a lower rate as a way to attract investors.

These properties can also increase in value before completion, making the potential for capital growth much higher than with other investment types.

Are New Builds Better Than Old Homes?

There are many reasons why new builds are considered better than older homes.

New build properties tend to be more energy-efficient, have less need for repairs, and are easy to personalise.

These properties also attract tenants who prefer being one of the first to live in a building.

While there are certainly advantages to living in a new build, that’s not to say that older properties don’t also have benefits.

Older builds tend to be more spacious and have more history and character behind them.

One downside, however, is that these properties can require a lot of maintenance and repairs to get them ready for tenancy.

If they haven’t already been refurbished prior to investment, investors will need to pay costly fees on these properties to get them up to scratch.

Important Questions to Ask When Buying Off-Plan Investment Properties

When you’re thinking of investing in off-plan property, make sure you ask the following questions:

  • Who is the developer behind the off-plan property?
  • What is the buying process for this property?
  • When will the property be completed?

Before buying an off-plan property investment, you need to know how to identify a good developer, make sure the property will be created to a high standard, and ensure your funds are protected.

You should also make sure you understand the buying process for off-plan properties.

Usually, off-plan properties are purchased in different stages, with a percentage of the overall cost being put down each time.

Make sure you’re clear on the amount needed for each stage payment to avoid any issues.

All of our off-plan properties at RWinvest are developed by world-class companies with a track record for success.

We’re available to answer any questions you have about off-plan properties and can guarantee that your funds will be safe throughout the entire investment process.

You’ll also want to find out the expected completion date for the property. While sometimes there are unavoidable delays with the completion of off-plan properties, you will want to have an end date in mind for the project.

Trusted property companies will provide regular construction updates to keep you in the loop.

How to Choose Between New Build Vs Refurbished Property

If you’re struggling to decide whether to invest in an off-plan or refurbished property, it’s important to keep your potential tenants in mind.

Remember that a lot of tenants, particularly young professionals and students, will expect modern features and high-end appliances in a property, along with a well-designed layout.

With the rise of eco property in the UK, many people are also becoming more conscious of living an eco-friendly lifestyle, which makes off-plan new build properties the better choice.

Refurbished properties can offer a more unique investment, with design features that appeal to tenants, while off-plan properties can offer a more modern rental property with newer features.

One downside that comes with off-plan property investment is that investors may feel disappointed with the outcome of their purchase.

To avoid this, be sure to make extensive enquiries before committing yourself to the investment.

Here at RW Invest, we’re one of the UK’s top property investment companies when it comes to providing our clients with as much information as possible.

This includes taking them on tours of the construction site and using virtual reality to give potential investors an idea of the finished property.

Section 4: Start Your Research

13. Find the Best Property Investment Location in the UK

14. Understand Your Tenant Profile: Student vs Residential Property 

Another significant factor that’s integral to answering “how to invest in property?” is identifying your target tenant.

Identifying the best investment property for your target tenant helps you discover the best properties to invest in and help you get one step closer to a successful investment.

By deciding who your ideal tenant is and what they are looking for, you can purchase a property that really appeals to them.

For example, suppose you want to appeal to students. In that case, the best type of investment property might be located in a lively area. At the same time, the location may not be ideal for older tenants.

Student Vs. Residential Property: Which is Better? 

Before you can think about your target tenant, you need to work out whether you will invest in student or residential property.

Both these buy to let property types come with some key things to keep in mind, the main points being:

  • Student properties are often offered in the form of studio flats. This means that student buy to let is usually more affordable.
  • Residential properties can often offer better capital growth prospects than student flats.
  • Both student and residential properties are capable of generating high rental yields.

Tenant demand is usually high with both property types, but a residential property may be easier to sell due to a larger buyers market.

Request a Virtual Tour For One of Our Off-Plan Property Investment Opportunities Today

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15. Stay on Top of Property Market Trends

Once you’ve chosen your property type and understand how to appeal to your target tenant group, another thing you should do when selecting your investment property is to be aware of current trends.

The property market is often seeing new trends crop up regarding what people want from their rental properties.

The past year is an excellent example of this. Since the Covid-19 pandemic began, people’s attitudes towards their homes have changed significantly.

Here are some details of recent property market trends and how you can apply these to your own buy to let property search.

Property Buyers Seeking Rural Homes  Property Buyers Seeking Rural Homes 

Property Buyers Seeking Rural Homes 

One of the most major trends spotted throughout the Covid-19 pandemic has been a rise in demand for more rural properties.

Homeowners have reportedly been leaving the hustle and bustle of London and instead buying homes in more rural countryside locations.

According to research by Knight Frank, country houses saw a 2% increase in value between June and September 2020.

New Rental Property Trends 

While many homeowners have chosen to escape city centre areas, young professionals and student renters are still keen on renting city centre properties.

The past year has seen a new rental market trend, with increased demand for rental properties with certain features.

Due to the prevalence of remote working, renters are now keen on renting flats or houses with high-speed internet access and a space for a desk area.

Tenants are also seeking properties with outdoor space such as balconies and terraces or communal gardens.

Property developers have now started putting more of a focus on these qualities to cater to growing tenant interests.

Some properties now feature a dedicated home working space while also providing large outdoor spaces for residents to enjoy the fresh air.

How to Stay on Top of Property Investor Trends

If you want to learn about the latest property market trends, news, and happenings, be sure to regularly read news updates on the property market.

You can do this by subscribing to property news outlets or following RWinvest on Twitter for all the latest news and information.

You can also subscribe to our mailing list to receive our latest property market guides and blog posts.

Use Our Stamp Duty Tax Calculator To Work Out Your Potential Buy to Let Tax Payments

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16. Get the Highest Rental Yields

When it comes to investing in property, several UK locations offer some competitive rental returns.

Rental yields are assured by developers over a certain period and often reflect a favourable location with strong tenant demand.

Any investor that’s serious about making a lucrative investment should always understand what a good rental yield is.

Rental yields can be calculated by taking the yearly rental income for the property and dividing it by the purchase price.

Then, once you have this figure, multiply it by 100, and you’ll be left with your rental yield percentage.

Anything above 5% is generally considered a solid rental yield. Yields of 8% or more are highly desirable and can be found in several key UK cities. The higher the rental yield, the stronger the cash flow that will be available to the investor.

High rental yields are one of the first things you should look for in a future property investment. They ensure that your property can pay for itself and cover any extra costs like maintenance fees and ground rent.

Rental yields are often linked to a property’s location or what type of property it is, so you must work out rental yields before investing.

Rental yields are simple to work out and are a worthwhile endeavour if you are comparing many different properties, showing how quickly the investment can pay for itself.

While rental yields are an essential factor in choosing a property investment, high yields don’t always guarantee a successful investment.

For example, you could invest in a terraced house in an area with attractive average yields but find that the property struggles to attract desirable tenants.

You need to take into account all elements of the investment, selecting a property that not only has strong yields but also is likely to grow in value and appeal to your target tenant.

University cities often present the most attractive yields, as cities with large student populations like Liverpool, Manchester, and Leeds offer some of the highest yields.

Student properties tend to make more rental income due to the high rents on purpose-built student properties, while residential properties can also generate high yields.

The highest rental yield in the UK can be found in Liverpool. According to Totally Money, Liverpool’s L1 postcode boasts the best rental yield, with yields as high as 10%. Other Liverpool postcodes like L6, L11, L2, L3, and L4 have been known to offer rental yields over 7%.

When owning a rental property, you should aim to make enough money to cover any costs like taxes and other expenses while still generating attractive returns. The higher the rental yield, the more likely it is that you’ll make a handsome profit from your investment.

How Is Rental Yield Calculated?

Rental yields can be calculated by taking the yearly rental income for the property and dividing it by the purchase price.

Then, once you have this figure, multiply it by 100, and you’ll be left with your rental yield percentage.

What Is a Good Yield on Rental Property?

Anything above 5% is generally considered a solid rental yield. Yields of 8% or more are highly desirable and can be found in several key UK cities. The higher the rental yield, the stronger the cash flow that will be available to the investor.

High rental yields are one of the first things you should look for in a future property investment. They ensure that your property can pay for itself and cover any extra costs like maintenance fees and ground rent.

Rental yields are often linked to a property’s location or what type of property it is, so you must work out rental yields before investing.

Rental yields are simple to work out and are a worthwhile endeavour if you are comparing many different properties, showing how quickly the investment can pay for itself.

While rental yields are an essential factor in choosing a property investment, high yields don’t always guarantee a successful investment.

For example, you could invest in a terraced house in an area with attractive average yields but find that the property struggles to attract desirable tenants.

You need to take into account all elements of the investment, selecting a property that not only has strong yields but also is likely to grow in value and appeal to your target tenant.

Where Are the Best Rental Yields UK?

University cities often present the most attractive yields, as cities with large student populations like Liverpool, Manchester, and Leeds offer some of the highest yields.

Student properties tend to make more rental income due to the high rents on purpose-built student properties, while residential properties can also generate high yields.

Where is the Highest Rental Yield in the UK?

The highest rental yield in the UK can be found in Liverpool. According to Totally Money, Liverpool’s L1 postcode boasts the best rental yield, with yields as high as 10%. Other Liverpool postcodes like L6, L11, L2, L3, and L4 have been known to offer rental yields over 7%.

How Much Profit Should You Make on a Rental Property?

When owning a rental property, you should aim to make enough money to cover any costs like taxes and other expenses while still generating attractive returns. The higher the rental yield, the more likely it is that you’ll make a handsome profit from your investment.

Section 5: Create a Business Plan

17. Look for Price Growth and Establish an Exit Strategy

Similar to rental returns, when trying to answer how to invest in property, UK price growth through capital appreciation cannot be ignored.

It’s something all investors should look for in their chosen area of investment if they want to plan out a clear exit strategy for the future.

But what exactly is capital appreciation, what is an exit strategy, and why are both these things so important when you want to know how to get into property investment?

Let’s talk about capital growth and exit strategies in the next section of our guide to property investment.

What is Capital Appreciation What is Capital Appreciation

What Do You Mean by Capital Appreciation? 

So what is capital appreciation? Capital appreciation refers to the increase in value on a property, and many UK property investments are experiencing such growth.

Cities that are seeing heaps of regeneration are attracting more tenants and enabling the rising of property prices. Being aware of this is one of the best investment tips you can follow.

Before investing, it is a good idea to look at what areas are performing the best in the UK house price index and choose a property that has the potential to rise in value.

House price growth is one of the main reasons why so many people choose to invest in property. There are some serious opportunities to make significant amounts of money out of rising property prices.

Research property price growth predictions to get a better sense of the regions and cities whose property market is expected to perform well.

If you’re only interested in owning your investment property for a short period, finding out potential house price growth will indicate the best time to sell to maximise your returns.

Merchant's Wharf Interior of bedroom - investment property in Manchester Merchant's Wharf Interior of bedroom - investment property in Manchester

What Is an Exit Strategy? 

In property, an exit strategy is when an investor plans for when they decide to sell their buy to let properties later in life.

It’s crucial to establish an exit strategy before making an investment to ensure you get the most profit out of your venture.

Usually, an exit strategy is used when an investor decides they want to retire from property investment.

An exit strategy might involve selling all your properties at once, selling particular properties separately, or selling when you feel it’s necessary due to fluctuations in the property market.

Whatever you decide, be sure to put research in to ensure everything runs as smoothly as possible.

Invest From £53,500

Fifty5ive

Flexible Payment Structure

Manchester Prices from £221,050

Returns Available on Request 

Luxury City Centre Apartments

Invest From £35,000

ELEMENT - The Quarter

North West's First Eco-Development

Liverpool Prices from £74,950

8% NET Rental Return

300m Away From New £1bn Royal Hospital

Invest From £70,000

The Summit

Stylish Baltic Triangle Living

Liverpool Prices from £139,950

Assured 7% Rental Yields

15-20% Below Market Value

Bedroom interior of a newly built apartment Bedroom interior of a newly built apartment

What Are the Key Elements of an Exit Strategy? 

When creating a property business plan, the key elements of a property exit strategy are to ask yourself how long you intend to invest for, determining your risk level, how you might exit, and who your most likely buyer will be.

Research the different possible exit strategies to discover which one best suits you and your goals.

Like any other form of investment, it is essential to think about whether you want to keep the asset for a long time or for a set period, with an exit strategy already decided.

Establishing an exit strategy is important, and selling at the best time possible is a good way to ensure optimum returns and capital appreciation.

By paying attention to the property market and understanding when a property has reached its maximum value, you can receive significant returns when exiting a property investment.

Predicted 5 Year Property Price Growth in UK Regions Predicted 5 Year Property Price Growth in UK Regions

Are UK Property Prices Growing? 

In the UK, property prices are growing significantly. In a report from Savills, it has been revealed that UK house prices are set to grow by an average of 21.1% by 2025.

The highest growth is expected in the North West region, with an increase of 28.8% during the same period. Meanwhile, Yorkshire and the Humber follows closely behind with a 28.2% predicted growth rate.

18. Contemplate a Management Strategy

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19. Integrate Tax Into Your Budget

Rishi Sunak announces Stamp Duty Tax Holiday Rishi Sunak announces Stamp Duty Tax Holiday

If you’re interested in finding out how to start investing in rental properties, it’s so important to research the financial side of the investment.

Many people ask the question ‘how much money do you need to invest in property in the UK?’ and focus solely on the property price without considering additional costs like taxes.

Tax is simply part of how property investment works, and so many people get carried away in budgeting for their next investment without factoring in tax.

Before you go looking for answers on how to become a property millionaire in a year or how to become a full-time investor, you need to think about taxes.

There are several taxes which investors are liable to pay with property investment in UK locations.

You might be asking yourself — is property a good investment if I have to pay tax on my returns? What if the tax I have to pay is too high?

Before getting carried away, however, you need to do your research and use a rental property calculator to work out just how much you’re likely to pay.