You would be forgiven for believing that the recent tax changes and regulations involved in the buy to let market may have fully decreased the appeal that property investment has. We can confirm, however, that despite the changes, UK property investment is still a very good form of investment, and you should continue to consider it if you are looking to make your first investment. With interest rates currently at a reasonably low rate and the potential for house prices to increase in the near future, now may well be as good a time as ever to make your first property investment. There are a number of things for you to consider before making your first investment, so we have compiled a list of our top tips to help you make your decision.
Research and Understand the Market
We cannot stress enough how important it is to conduct your own research into the market, allowing yourself to understand all aspects of it and exactly what you are getting into. By doing this, you will be fully educated and will place yourself in a good position to make informed decisions throughout the whole process. Property investment gives you so many opportunities for financial growth, much more than other methods such as placing your funds into an investment fund.
Be Certain About the Financial Aspect of the Investment
The key aspect of any investment is being sure that the numbers add-up, and that they add-up in your favour. Being sure about a good yield for your property is important to making your investment as it shows how profitable the investment is likely to be. Continual focus on the financial aspect allows you to stay on top of how worthwhile your investment will be, meaning that you can generate the optimal amount of money.
Consider the Perfect Area to Invest In
If you proactively research a number of different areas you could potentially invest in, you are able to start considering where might be the best area for you to choose. A low crime rate, access to local amenities and good transport links are just some of the factors that buyers and tenants might consider during their search for their next home. Finding a good balance between a good quality area to live in and good financial aspects on your part is the key to making the right investment. If you are able to find the right balance, you could make a good amount of money whilst minimising the potential of any void periods.
Be Sure About What Potential Buyers or Tenants May Desire
By looking into the area that your property is located in, you will be able to determine a potential target market, and transform your property into something that will be perfect for them to live in. Whether the area is renowned for business, has a local university or is close to good quality schools, you will be able to tailor your property to the right target audience, making it more appealing to them. This will really enhance the chances of you finding a buyer or a tenant, especially if they are able to envisage themselves living in your property.
Have the Right Insurance in Place
Once you are in possession of your property, you will almost certainly want to insure it as soon as possible. Despite this, insurers will typically not look to cover damages on a house if it has been occupied for less than 30 days. If you wish to do so, you could take out unoccupied home insurance, which is more appealing to investors that dont live near to their property as they will wish for it to be as protected as it can be.