How to Make Money from Property - 7 Tips for Success-01

How to Make Money From Property – 7 Tips For Success

The property market presents one of the world’s most popular investment prospects, taking attention away from other types of investments like stocks and shares or premium bonds. For those looking to get into property, there’s a range of different investment options to choose from for those keen to know how to make money from property in the UK.

In this helpful guide, we look at some of the most popular strategies for making money from property and explore reasons why buy to let is viewed as one of the most lucrative investment routes. We also list seven top tips for all investors to keep in mind on how to successfully make money from property with buy to let. If this sounds useful to you, be sure to continue reading to find out more.

 

Continues below guide

v

Learn More in Our FREE Guide to Making Money from Property

How to make money from property

Enter Your Details Below for Instant Access

What are the Different Ways to Make Money From Property?

Investment is one of the best and most effective methods when it comes to how to make money in property, but what are the most common strategies used? If you’re interested in finding out how to make money investing in property, here are the most popular investment methods to consider.

 

Buy to Let

Buy to let is one of the most popular methods for making money out of property in the UK. The process of traditional buy to let is very simple – you will purchase a property (usually an apartment), and rent it out to tenants in order to generate rental income. This could either be a student or residential property. The reason that buy to let is considered such a good investment strategy is because of the potential to make large amounts of money from both rental income and capital growth. It is for this reason that buy to let is seen as a great way to boost your savings, according to the Big Investment.

The UK housing market and rental market is thriving, with rising rental costs and increasing demand being seen across major property cities. For those wondering how to make money from buy to let, rental yields are your answer. When you invest in a buy to let property, you’ll receive rental returns on a regular basis, often guaranteed if you purchase the property with an investment company.

In certain top-performing areas such as North West cities, Liverpool and Manchester, increasing tenant demand has led rental costs to rise. In Manchester, for instance, there had been a 5.76 per cent rental price growth, possibly down to the increasing population of young professionals and students – the most popular tenant groups for UK property. It is for this reason that if you want to know how to make money from buy to let properties, you should make sure you research the best buy to let areas to reap the full benefits of your investment.

 

How To Make Money From Buy to Let Rental Properties

To understand how to make money from a rental property, you should make sure you buy a property in an area where rental costs are high but property prices are low. This allows you to generate the most attractive rental yields for your investment. A good example of this kind of city is Liverpool, where rental yields can reach 10%, and the demand for rental properties is high.

 

Pros

  • Once you know the tips and tricks of how to make money from rental properties, you can make a regular and guaranteed rental income.
  • On top of rental income, you can make significant capital growth returns if your property grows in value by the time you sell it.
  • You can often use a buy to let mortgage to help you pay for the investment.
  • You can make your investment from anywhere in the world. For instance, if you don’t live in the UK, you can still invest in UK buy to let by enlisting the help of a property management company who will take care of the property for you.

 

Cons

  • If you can’t find a long-term tenant for your property, you could suffer from a loss of income.
  • Rental yields and capital growth can differ depending on the area you invest in.

Start Your Buy to Let Property Journey Today

View Properties

Property Renovation Projects (Buy to Sell)

Property renovation, also referred to as ‘buy to sell’, is another of the most common investment strategies. Unlike buy to let, this kind of investment involves you purchasing a property for a low price and refurbishing it until the value of the property has increased. The key in how to make money from a property renovation lies with knowledge. You need to be knowledgeable about the property market in the area you’re interested in, identifying certain areas where property prices are set to grow through capital appreciation. You also need to know tips and tricks on how to add value to a home, which could mean having a good eye for interior design or property trends. If the property you invest in requires a much more intensive renovation, you may even need to get advice from a property developer.  Because of this, property renovation projects are usually taken on by property experts rather than those just getting started in property investment.

Property renovation projects can be successful if you do your research and properly plan out your investment. Past investors have had a lot of success with these type of investments, and they’re a good option if you want to generate returns in the form of a lump sum. Buy to let is often favored over property renovation projects, however, as this allows you to make regular rental returns on top of returns through the sale of the property.

 

Pros

  • You can generate a large return on investment if you purchase a property in a high-growth area and make the right kind of renovations.
  • The process of buy to sell can be quite quick depending on how long your renovations take and how long the property takes to sell, which makes it a good option for those who want fast returns in a lump sum.

 

Cons

  • If you don’t have the right industry knowledge, the investment could suffer and you could waste money on unnecessary renovations.
  • Property renovation requires a lot of dedication and hard work, making it a tricky investment if you don’t have a lot of free time.

 

 

Continues below properties

v

New Offer Announced

One Baltic Square

Voted Coolest Place to Live

Liverpool Prices from £121,950

7% NET Return for 3 Years

£190m Baltic Triangle Regeneration

New Units Just Released

City Residence Apartments

Deluxe Apartments with Balconies

Liverpool Prices from £114,995

7% NET Rental Return

Near £5.5 Billion Regeneration Area

Completed & 100% Tenanted

The Bridewell

Historic Victorian Building

Liverpool Prices from £74,995

8% Assured NET Rental Return

100% Tenanted

Is Buy to Let the Best Way to Make Money From Property?

So out of those three property investment strategies, is buy to let the best answer in how to make money from your property? When you look at the benefits that come with buy to let, it’s easy to see why so many people consider this the best property investment strategy.

Here are some of the main benefits of choosing buy to let for your property investment strategy.

 

You can take advantage of the UK Rental Market

When wondering how to make money from property, UK property investment is your answer. The UK housing market and rental market is thriving, with rising rental costs and increasing demand being seen across major property cities. In certain top-performing areas such as Liverpool and Manchester, increasing tenant demand has led rental costs to rise.

By investing in student or residential property in areas with large populations of students and young people, a property investor can expect to find a tenant for their buy to let property a lot more easily. It is for this reason that buy to let is often considered one of the best types of investments and the best way to invest money to make money quickly. If you’re looking for guidance on how to make money from property in the UK, one of the main tips is to do a lot of research on locations. While areas like the North West are performing well, some spots like London have experienced a declining rental market over recent years, which can negatively impact your cash flow.

RWinvest - How to Become a Landlord

You can make Guaranteed Rental Returns

With certain types of property investing strategies such as flipping a property, the process can be very slow. Flipping property involves buying bargain property which is usually run-down and in need of a refresh, making some major improvements such as redecorating and fitting a new kitchen and bathroom, and then selling it for a higher price. While this is a good investment option for some, it can take a long time before you see any return on your investment.

For those who aren’t interested in finding out how to make money from property renovation, there’s buy to let. And for those wondering how to make money from buy to let, rental yields are your answer. When you invest in a buy to let property, you’ll receive rental returns on a regular basis, often guaranteed if you purchase the property with an investment company.

At RWinvest, for instance, some of our property deals come with guaranteed yields for a period of one or two years, giving you peace of mind that you’ll see an instant return from your investment. This is a particularly good method of making money from property for beginners who are concerned about the risk of losing profit that can come from property investing.

You can make Returns through Capital Growth

One of the main qualities that attract so many people to buy to let is the fact that you can make two types of returns – rental returns and capital growth. When you become a real estate investor, you have the option of making money from property when you decide to sell your investment later in life. If the value of the property has increased over time due to a strong market, you will have made capital growth returns on top of the money you’ve made through rental income. For those saving money for retirement or another end goal, buy to let is a great way to boost your savings account, according to The Big Investment.

Of course, your likelihood of capital growth is made stronger if you invest in the right area, so be sure to use due diligence and find the fastest-growing locations. Some parts of the UK have a more optimistic outlook on capital growth than others. To generate capital gain through property investment, UK cities like Liverpool are ideal as house prices are on the rise and expected to continue growing. Extensive regeneration projects are partly to thank for this growth in property prices, with plans to massively improve quality of life for the city’s residents and increase interest from those around the UK and overseas. Properties in the entire north-west region are predicted to grow by 18.1 per cent by 2022, creating plenty of opportunities for the investor getting started in property.

 

You can make a Hands-Off Investment

Finally, if you’re wondering how to make money in property investment but you don’t have a lot of time on your hands, buy to let is a great option for this too. Unlike real estate investing strategies that focus solely on the renovation of a property, buy to let investments in the UK come with the option to enlist a property management company to help you with the day to day tasks involved with running a rental property. This way, you don’t need to worry about any landlord responsibilities such as finding and managing tenants, and can easily make money from property alongside your full-time job or alternative commitments, eventually building a lucrative property portfolio. All you need to worry about is the returns going into your bank account!

How to Make Money From Buy to Let: 7 Tips

So now that you know why buy to let is one of the best and most effective methods of making money through property, what steps can you take to ensure you’re getting the most out of your buy to let venture? Here are seven top tips to keep in mind if you want to make money from property.

High rental demand is one of the number one qualities that you should look for when seeking a buy to let opportunity. Without demand for your property, you can’t make money from property investment as there will be no one to earn rental income from. During your initial research process, look for buy to let opportunities in areas with large populations of students and young professionals. These two tenant groups are more likely to be seeking a rental property, particularly an apartment in the city centre or other popular locations.

Rental yields represent the amount of money an investor is able to make through their buy to let venture, and without a high enough yield, making money in property is more difficult. As a rule of thumb, you should look for a rental yield of at least 5%, as any lower and you’re limiting your potential earnings. When looking at investment opportunities in buy to let hotspot areas like Liverpool, it can be easier to find high yields. Liverpool boasts some of the highest rental returns in the UK, with the L1 postcode offering an impressive 10% yield. By identifying the areas and opportunities with the best possible yields, you can increase your chances of making money from property.

Alongside rental returns, capital growth returns are another of the most popular ways that investors make money from property investment. When researching buy to let properties, think about whether or not the area you’re interested in has a good track record for capital growth and strong future growth predictions. Investors who choose to buy property in the North West region, for instance, benefit from expected growth of 24% by 2024. The better an area’s predictions for capital appreciation, the more likely it will be that investors can expect their investment to increase in value over time, offering the chance to make some attractive returns.

The less you spend on your venture, the more chance you have of making money from property investment if the value of your property rises over time. One way to ensure you’re spending the lowest possible amount is by purchasing off-plan property, which is property that hasn’t yet completed and is still in the construction stage. Off-plan investment comes with a number of benefits, one of which is the fact that developers tend to offer discounted below-market prices for off-plan properties. Choosing to purchase off-plan buy to let is one of the smartest ways to ensure you’ll make money from property investment.

Once you’ve found a buy to let property that you love, and secured some reliable tenants, one of the best things to do to continue making money in property investment is to keep your tenants happy. The longer tenants stay in your property, the longer you will be generating a consistent income and avoiding any void periods. Of course, if you’re a hands-off investor, it’s a little more difficult to have control over whether or not your tenant is pleased with both the property and management. That’s why it’s important to find the best property management company possible to manage your property on your behalf. This way, you can rest assured that both your property and your tenants are in good hands.

If you’re just starting out in property investment, the best way to make money from property is by owning your first buy to let apartment or house. After this, you can continue to earn more and more income by building a wider property portfolio. Once you own a number of buy to let properties in top UK areas, making money from property happens more easily and you’ll be able to build an attractive income in no time.

One of the key things to think about when getting started with property investment is to plan your exit strategy. An exit strategy helps buyers get a better idea of how and when they plan to leave their investment, and allows them to take advantage of the best deals and get the most out of making money from property. For example, if you want to sell your property at a time when the market is at its highest, you should plan to monitor property prices and keep an eye on capital growth.

1. Look for Rental Demand

High rental demand is one of the number one qualities that you should look for when seeking a buy to let opportunity. Without demand for your property, you can’t make money from property investment as there will be no one to earn rental income from. During your initial research process, look for buy to let opportunities in areas with large populations of students and young professionals. These two tenant groups are more likely to be seeking a rental property, particularly an apartment in the city centre or other popular locations.

2. Find High Rental Yields

Rental yields represent the amount of money an investor is able to make through their buy to let venture, and without a high enough yield, making money in property is more difficult. As a rule of thumb, you should look for a rental yield of at least 5%, as any lower and you’re limiting your potential earnings. When looking at investment opportunities in buy to let hotspot areas like Liverpool, it can be easier to find high yields. Liverpool boasts some of the highest rental returns in the UK, with the L1 postcode offering an impressive 10% yield. By identifying the areas and opportunities with the best possible yields, you can increase your chances of making money from property.

3. Consider Capital Growth

Alongside rental returns, capital growth returns are another of the most popular ways that investors make money from property investment. When researching buy to let properties, think about whether or not the area you’re interested in has a good track record for capital growth and strong future growth predictions. Investors who choose to buy property in the North West region, for instance, benefit from expected growth of 24% by 2024. The better an area’s predictions for capital appreciation, the more likely it will be that investors can expect their investment to increase in value over time, offering the chance to make some attractive returns.

4. Seek Off-Plan Discounts

The less you spend on your venture, the more chance you have of making money from property investment if the value of your property rises over time. One way to ensure you’re spending the lowest possible amount is by purchasing off-plan property, which is property that hasn’t yet completed and is still in the construction stage. Off-plan investment comes with a number of benefits, one of which is the fact that developers tend to offer discounted below-market prices for off-plan properties. Choosing to purchase off-plan buy to let is one of the smartest ways to ensure you’ll make money from property investment.

5. Keep Tenants Happy

Once you’ve found a buy to let property that you love, and secured some reliable tenants, one of the best things to do to continue making money in property investment is to keep your tenants happy. The longer tenants stay in your property, the longer you will be generating a consistent income and avoiding any void periods. Of course, if you’re a hands-off investor, it’s a little more difficult to have control over whether or not your tenant is pleased with both the property and management. That’s why it’s important to find the best property management company possible to manage your property on your behalf. This way, you can rest assured that both your property and your tenants are in good hands.

6. Build a Portfolio

If you’re just starting out in property investment, the best way to make money from property is by owning your first buy to let apartment or house. After this, you can continue to earn more and more income by building a wider property portfolio. Once you own a number of buy to let properties in top UK areas, making money from property happens more easily and you’ll be able to build an attractive income in no time.

7. Plan your Exit Strategy

One of the key things to think about when getting started with property investment is to plan your exit strategy. An exit strategy helps buyers get a better idea of how and when they plan to leave their investment, and allows them to take advantage of the best deals and get the most out of making money from property. For example, if you want to sell your property at a time when the market is at its highest, you should plan to monitor property prices and keep an eye on capital growth.

Choose RWinvest For Your Buy to Let Venture

If you’re interested in making money from property investment and think that the buy to let property market is right for you, get in touch with our team of property experts at RWinvest to find the perfect UK investment in property. We can help offer advice on investing money for beginners that are just getting started, as well as helping you grow your portfolio with opportunities in key cities like Liverpool and Manchester. If you’re wondering how to make money from property, look no further than buy to let with RWinvest.