Throughout the past few weeks, our aim has been to educate landlords and investors in the basics of investing. A simple guide to all they need to know about property investments. So now its time to turn the past few weeks into four simple tips.
1. Find THE location
Everyone knows that property prices have been rocketing for the past few years, but its not happening everywhere in the UK. Take Leeds and its surrounding areas for example. All this time prices haven’t risen as significantly as other places but its slowly getting there. TIP – if you’re looking to invest in Leeds and surrounding areas, now is probably the best time before prices go higher. Drop us an email for more information.
2. Would you buy there?
Consider the location very carefully. While investors look for capital gains, their target audience – the tenants – are looking for a good location for a home, ideally close to what they feel is important to them – be it schools, amenities, workplace. So have a look around, consider yourself in your tenants position and see what appeals the property has from their perspective. An investment can have the potential of achieving high returns, but it needs to be tenanted in order to do that.
3. Plan, Plan and Plan your Investment Borrowings
Stamp Duty, Pensions, Buy to Let mortgage rates, its all constantly changing. It was only recently the Government announced changes to stamp duty for buy to let properties. The Autumn Statement announced the following changes for buy to let which will be coming into effect soon. So be prepared when it comes to planning your investments.
Estimate and budget the income and expenses from the investment. Ensure whatever happens, you’re comfortable with the income once all expenses have been taken into account – especially those unexpected expenditures such as maintenance – regardless of whatever situation/circumstance the investor may be in.
With warning of increasing interest rates, mortgages will possibly become more expensive in early 2016. Investors need to be aware of the financial contribution this will have towards their expenses.
4. Research… as much as possible
Research consists of making sure an investor is aware of the potential of a property. Examine carefully what type of property you want and research to find the key investment opportunity. Know how much money will be put into the property beforehand so you can work out the financials as well as finding out how much capital gains and rental income will be expected from the property.
We at Silks aim to provide our investors with all they need to know about their investment before they commit to a sale. Sign up now to receive our investment property alerts.