How to Succeed in UK Property Investment [2022]

Universally, property investment is often considered to be a solid investment opportunity.

So long as you take the time to execute proper due diligence, you can find yourself with a flourishing stream of rental income and the potential for capital appreciation further along the line.

But what should you look out for?

Regeneration is Key

Researching your chosen property’s area (the number of ongoing regeneration efforts, the amount/quality of the schools there, etc.) is essential. It can often make the difference between a flourishing investment and a failing one.

Regeneration, in particular, is one asset that successful investors swear by.

Through boosting and revitalising a town/city, it can potentially enhance your profit yield massively.

Projects that serve to improve local transport and infrastructure can also bring a whole number of new people into an area and is usually a prime indication that it has the potential to become an investment hotspot – it will offset the likelihood of any potential financial risks further along the line.

In Wigan, for example, one of the most prominent regeneration schemes in the area is the plans for High Speed 2, which is set to dramatically transform and improve transport services in the area, allowing travellers/residents to get to the UK’s major cities in record time.

Find the Right Investment Strategy for You

There are many different routes in property investment, but the two main strategies are:

• Buy-to-Let
• Buy-to-Sell

Buy-to-Let properties are purchased with the intention of being later rented out to tenants, who then provide the investor/owner with a monthly rental income and steady returns over a long period.

Buy-to-Sell properties essentially are ones that are bought with the intention of being fixed up to then later sell it on for a larger profit than the initial asking price.

Usually, this brings a substantial one-off, short-term payment – providing that the investor has made the right improvements to increase the property’s value and found the right buyer once they are ready to sell.

Define What Kind of Investor You Want to Be

Investors that take on the full responsibilities of being a landlord full-time can very feasibly utilise their profit as a primary source of income.

However, that doesn’t necessarily mean you HAVE to give up your current career to own and manage your property – it is equally possible to profit from property investment without it taking it up all your time.

Once you have defined what type of investor you would like to be, you can decide whether you need to consult with a property management company or not.

These companies can manage your portfolio on your behalf, meaning that the bulk of the maintenance and general responsibilities that come with properties is not solely on your shoulders.

They can also respond to any tenant issues, removing the need for you to be directly contacted.

This can often bring a mostly hassle-free approach to the venture and is likely the best option for those that are unable to fully take on the time-consuming duties that come from owning a rental property.

Again, it’s all about you and your own needs – so take the time to research the best route for you!

Create a Strict Budget – Remember Your Taxes!

Before you even consider investing in a property, it is crucial that you develop an extensive and detailed budget.

Having this in place from the offset means you will be able to find the best possible property for the optimum price.

After all, you don’t want to go through the lengthy process of investing in a property just to find out you could have gotten a much better asset for a much lower price.

It is equally vital that you factor in all of the additional costs in your budget plan – such as the current property taxes in the UK.

Some of these additional costs will include the following:

• Property price,
• Reservation fees,
• Monthly repayments (if using a mortgage),
• Taxes (such as Stamp Duty Tax/Income Tax),
• Landlords’ insurance,
• Maintenance Costs

Make Sure You Have an Exit Strategy in Place

Property is undoubtedly a long-term investment, and you cannot simply throw away your investment (even if you find yourself in the midst of any financial trouble).

So, it’s best to ensure that you have some sort of plan figured out ahead of time.

Having an exit strategy in place is a good way to ensure this.

If you’re looking to build towards your retirement funds, you will want to sell your property and make as much rental yield as you can before selling it at the right time.

Doing this can take a lot of time (because property is a physical asset), so you must account for this in your planning.

With research, you should be able to study the market and any price predictions to develop a sense of the best time to sell – at which point you will have some idea of when to enact your exit strategy and sell your property for a significant profit.

Conclusion

Now you know some of the basics of how to succeed in UK property investment.

Before taking the final leap, though, you must remember that this article is an overview of the initial steps of investment – to ensure you have a grasp of the various complications that comes from the latter stages, you must conduct proper research into the latest trends, strategies and techniques.

On the whole, however, with demand for UK property being particularly rife at the moment and with no hint of stagnation, this could be the perfect time to begin your journey as a UK property investor!