Are you thinking about investing in property? Property is an extremely tangible asset which can provide you with a sustainable income and providing you with financial independence and security. Putting your savings into property may seem like a daunting step; however, there are so many benefits to gain.
To help you decide if property investment is right for you, read this step by step guide on property investment. This will enable you to understand how the property market works and will certainly help you to make sure your venture is successful.
Assess your finances
The very first thing you should do before even looking at properties is to analyse your financial situation. This can mean calculating your current income alongside any ongoing expenses that you will need to pay out during and after the purchase. This includes purchase costs, along with mortgage fees and Stamp Duty, which is the tax you pay when buying real-estate.
For instance, you may already have a property in mind, and your nest egg savings accommodate this purchase. However, you need to establish whether this property is profitable enough to provide you with steady and disposable income.
Speak to the experts
If you want to invest but have no idea where to start, the best thing to do is consult with an expert who can point out good valuation properties with high rental yields in prime locations. The best way to obtain this information is to seek advice from a property investment company like RW Invest, who specialise in helping first-time investors.
Your chosen property investment company will devise a plan for you in accordance with your preferences. They will usually advise you to invest using a company name, as this appears more professional and is much more secure.
Find a property
Before purchasing a property, you should establish where there is a high rental demand and evidence of capital appreciation. Currently, the north-west is one of the most popular places to invest, with Liverpool and Manchester leading the way with high rental yields in central locations.
If you do not find a property you want to invest in, an off-plan investment might be best for you. This involves properties that are still under construction and may be perfect for you. Before investing, property experts usually utilise smart technology to showcase what the finished site will look like to help you understand what you’re buying.
Get legal assistance
Property investment involves a series of legal processes, which is why you will need to find yourself a conveyancing solicitor. They will help you with documents like the tenancy agreement, particulars of sale and deeds and most importantly establish completion of the deal with additional benefits. . This assistance will offer you reassurance that you have invested in a property legally and correctly.
However, you should also consider getting professional indemnity insurance which will cover you if your legal assistance makes an inherent mistake. Although, you can always avoid any errors by ensuring you work with recommended solicitors who are known for their reputable and professional work.
Attract your tenants
Once your purchase is complete, and the property is officially yours, you will need to market it and find the right tenants. Avoid opting for the first-come-first-serve method, as unless you know these people, you may be taking a risk.
Instead, you should conduct tenant assessments including finance and background checks. This will reassure you that you will receive regular cash flow income while avoiding unnecessary expenses for property damage. Once you have decided on the right tenants, you should consult with your solicitors once again to draw up a tenancy agreement which will lay out the terms of the tenancy, as well as your responsibilities as a landlord.
Take on the landlord role
It is essential to protect yourself as a landlord, and you can do this by taking out landlord protection insurance and making sure you obtain tenancy deposits in the event of any damage. This can prevent any unnecessary lawsuits and expenses that may occur during the tenancy period.
It is up to you whether you want to take on a hand-on or hands-off investment, the latter means you will undertake any maintenance and instead employ a lettings management company to do these tasks for you. This information should be included in the contract to allow your tenants to understand the processes you have in place. Once you’re used to the role, you may decide to invest in further real estate and develop an impressive property portfolio.