Buy to let investment is one of the best asset classes to consider if you want to make money from property to boost your income, grow a diverse investment portfolio, and make returns that will help you in later life.
If you’re interested in getting started with the buy to let property market and want to find out tips on how to start investing in property, you’ve come to the right place. Read our guide with four top tips useful for the beginner property investor who wants to know how to get into property investment.
4 Tips on How to Get Into The Property Market
How to Get Into Property Tip 1 – Think About Your Reasons For Investing
First things first, you need to be sure that you’re ready to begin investing. There are different reasons why people consider purchasing a buy to let property, and it’s important to have a clear vision of your own reasons for getting into property.
Are you getting started with property investment as a way to grow your existing finances alongside your other commitments such as a full-time job? Are you using property investment as a tool to generate an attractive retirement fund for later life? Or, are you hoping to launch a full-time property business, and see your initial buy to let investment as a good first step towards this? Before finding out how to get into the property market, you need to be sure of your motives behind making a buy to let investment. Once you understand this, you can use this knowledge to help you create a more considered and detailed strategy, as different motives could lead to different decisions being made.
For instance, if you’re investing thinking of getting into property as a way to maximise your retirement funds, you should pay a lot of attention to capital growth prospects. This way, if you decide to sell the property when you reach retirement age, you could make attractive returns on your investment if the property has grown in value over time – on top of the rental returns you’ve acquired over the years.
Is it Worth Buying an Investment Property?
Property investment is considered one of the best investment methods for those looking to generate consistent returns over time. If you understand what’s involved, know your reasons for investing, and have the available funds to so, it’s definitely worth getting into property investment.
How to Get Into Property Tip 2 – Get Financial Advice
Before you even consider how to become a property investor, you should make sure you fully understand how to get into the property market without affecting your financial health. Buy to let property investment is a big commitment and should never be rushed into. While you might think you have sufficient funds to cover your investment, this may not be the case if there are additional costs and fees involved.
This may mean speaking to a financial advisor to learn about different taxes that buy to let investors are required to pay, and to get a better understanding of all the money-related lingo involved with the property market. Investing in real estate is a business venture, after all. When putting a plan together on how to start property investment, make sure you treat the venture like any other business plan by putting a financial focus on your strategy.
How to Invest in Property With no Money
If you want to find out how to make money from property with no money, you’re going to find property investment tricky. To make a solid property investment, you’ll need to have the funds to cover it. There are, however, ways to invest in property without a huge amount of money.
Using a buy to let mortgage is one of the top finance options and the easiest way to purchase an investment property if you don’t have a lot of cash available. With a buy to let mortgage, you’ll usually need to put down a mortgage deposit of around 25%. The lower the overall purchase price of the property, the lower this deposit will be, therefore, using a buy to let mortgage is a great way to get into the property market if you don’t have much cash. If you don’t have enough money available for a buy to let deposit but still want to know how to invest in property with no money, the best thing to do is to save up until you meet this goal.
How to Get Into Property Tip 3 – Invest with a Property Investment Company
One of the number one tips on how to start investing in property is to enlist the help of a property investment company. Buying property through a company is a good tip when it comes to real estate investing for beginners as it allows you to explore a range of buy to let opportunities from trusted property developers, without having to search around for an investment property yourself.
Property investment companies will do most of the work for you, finding property deals with the most impressive yields in high-growth areas, liaising with solicitors, and even finding you a suitable property management company if you want to make a hands-off investment. Better yet, they’ll be happy to provide potential investors with advice on how to get into property investment as a beginner, along with offering experienced investors advice on how to grow their property portfolio.
A lot of property companies will also offer below-market property prices for their off-plan properties, as well as a guaranteed rental income on certain properties for a period of one or two years. This way, you can get started in property while knowing that you’re in good hands, and be guided through each step of the buy to let process.
How do I Start Investing in Property?
The easiest way to begin investing in property is to enquire with a property investment company about different opportunities you’re interested in. This way, you can recieve first-hand advice on the property market and learn how to start a property investment venture with the budget you have available.
Once contact has been made with the property company, you’ll be invited for meetings and property viewings where you can find out more about certain properties. You’ll also get the chance to explore opportunities that fit your budget, and be guided through the most affordable properties. By utilising this process, those who feel unsure of how to become a property investor with lower funds can begin their investor journey safely and securely. When working with a property investment company, be sure to conduct due diligence on both the property company itself and the company leading the development project.
How to Get Into Property Tip 4 – Do Property Market Research
While a property investment company will do a lot of the work for you, this doesn’t mean you shouldn’t carry out your own research on the UK housing market before finding a suitable opportunity.
Not every property investment opportunity comes with the same potential, so if you want to find out how to get into property and benefit from the best returns possible, it’s essential to investigate the UK property market. Pay attention to things like rental yields, tenant demand, capital growth, and predicted market price changes, as these are all major components of a solid investment and should make up a big part of all buy to let investment strategies. Property market trends can also offer an indication of the best type of investment property to consider at that time. For instance, if a UK city was seeing a high level of demand from young professional tenants, but a dwindling student population, investing in residential property would be the wiser choice.
If you’re serious about learning how to become a property investor, staying on top of property market news is essential. You should also keep an eye on any general UK news and economic trends such as Brexit, as events like these have the ability to influence the property market in some way.
Will House Prices go Down in 2020 UK?
According to a recent report from JLL, house prices in the UK will see growth throughout 2020. The UK as a whole is expected to see property price growth of 2.5%, while property prices in the North West region should experience an even higher increase of 3.1%.
For more advice on how to get into the property market as a beginner investor, contact us today for a helpful chat with one of our property professionals. We can guide you through the buy to let process and help you select the type of investment that’s right for you.Sarah Roberts, RWinvest
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