Real Estate

Real estate Investments in the UK: Beginners Guide

Most of the property market in the UK was stable recently. Prime London didn’t fare as well as other regions, with some quite heavy declines. House prices at a more accessible point remained fairly stable, with some noticeable increase in parts of England. Overall market performance was more sluggish than the previous year, with property buyers and sellers putting back decision-making until there was more certainty about Brexit. The final Brexit date instilled confidence in property investors, buyers and sellers looking to move in 2020.

UK rental property demand is stronger than ever, with an increasing need for high-quality rental accommodation guaranteeing a steady supply of tenants. So without further ado, here is a useful guide for novices wanting to try out real estate investment in UK.

Know how will you finance your investment

During the planning process, your investment strategy should include exactly how you will purchase a property.

Several different things to consider are:

  • Stamp duty land tax
  • Get a mortgage
  • The property’s daily running
  • Current market property prices
  • Whether it’s a good time to buy
  • Costs of survey
  • Solicitor fees
  • Insurance

What sort of investor do you want to be?

Investing in property offers you a number of options. You might end up with:

  • A new career
  • Your primary revenue stream
  • A source of extra income besides another job

Minimize risk before you buy

Ask the right questions before taking the huge step:

  • Are there similar structures in this area?
  • What rent do similar properties achieve?
  • Are there strong tenant demands? Weak demand may mean the property will be more empty than occupied
  • Is there a strong owner/investor market if I ever choose to sell to get my money back?
  • Will rent cover my mortgage, management fees, repairs and other likely costs?

All this may seem a common-sense process, but it’s essential that you do your due diligence before you buy. You’d be shocked how many people “buy land” without worrying about whether it suits their plan or not.

Bear in mind the attractiveness of UK

There is rising tenant demand in the UK, especially since the population is also growing. Projected to rise by 74 million people in the next 20 years, future housing demand is huge. Many of the major ‘first’ cities fall behind delivering housing quotas, increasing the impact of residential undersupply.

One finding from the SevenCapital Brexit Survey shows that nearly 85% of investors currently invest in the UK market, highlighting how popular UK property remains an attractive and stable investment.

U.K. regeneration is underway

Regional British towns like Birmingham, Liverpool, and Leeds are thriving. Over recent years, with London markets rising massively, buyers have been searching beyond the capital for new alternatives for more lucrative returns. And with improved infrastructure making its way to these cities, like HS2, results are major regeneration.

Remember: take calculated risks, inform yourself well and arm yourself with patience! Eventually, the right property will come your way… or rather, you will find it and reap the benefits!

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