Every property investor wants to know the secrets of their successful predecessors. However, most of the time, people are reluctant to share their secrets and how they came about being financially free. Luckily for you, we’re sharing everything we know today. If you’re an investor wanting to get started in property, you will want to know everything possible to ensure you reach success.
After all, you’ll be putting money into an investment that you want to ensure you make good returns on, and own a lucrative venture as time goes on. Many investors make the mistake of investing with their heart and forgetting to do their research prior to investing. However, we’re here to teach you the basics and ensure you’re on the right path.
Let’s take a look at what you need to know before getting started in real estate. We’re spilling all the top tips and tricks today, so read on to find out more.
Look for a high yielding location if investing in buy to let
If you’re investing in a buy to let investment, you will want to look for a high-yielding location. Rental yields are essentially a percentage of the property price that you earn from renting out the property; the higher the rental yield is, the better. Certain areas in the UK are better for yields.
The Totally Money Buy to Let Rental Yield Map details the top 25 UK postcodes where investors actively enjoy high returns and rental yields. Liverpool, Falkirk and Glasgow have all been named as the top areas. RWinvest, a North-West based award-winning property company, have countless guides, blogs and podcasts stressing Liverpool as an upcoming city to invest in.
This is mainly because Liverpool has undergone vast regeneration and restoration over the last decade. Property experts predict there will be a 24% property price increase up until 2024 in the North West region alone. Any investor who doesn’t want to get involved with this price increase would be missing out on a lot of money!
Try a hands-off approach
As an investor, there are two main approaches you can take to property investment. A hands-off investment strategy is when you’re not actively involved with the investment process, and your property is often managed by a property management company. Sometimes investors avoid this because they have to put the success of their investment into the hands of someone who could potentially destroy their hard work.
However, this isn’t the case if you conduct due diligence on property management companies. Before working with these companies, you must ensure people have worked with them before, and they have a plethora of other investors working with them. A hands-on investment strategy is another you could try; this is when you’re actively involved in the acquiring of tenants, and essentially, you become a landlord. While this may work for some people, it’s a lot of effort and doesn’t always work out for everyone else.
Only work with a company with a track record
When a company has a track record, they’re a lot more likely to be trustworthy. Having a track record essentially means they’ve worked on properties that are successful and completed. If you’re investing in an off-plan investment, then this is definitely something to look for as you don’t want to lose any unnecessary cash from your investment because you’ve chosen an unreliable company. If you’re curious about a company’s track record, there are various ways to check the company out.
Their website will most likely have a track record portfolio section (or something very similar), but if you want to delve deeper, we would suggest looking at their Trust Pilot profile and seeing what people say there. It’s likely that they will have honest investors on their Trust Pilot reviews, and if they mysteriously don’t have this (or at least a Google Reviews page) then we’d recommend reconsidering investing with them!