Is property investing right for you and how do you know when it’s the right time to invest?
Individuals often consider entering into the world of property investment on their quest for financial freedom. Rightly so; property investment can be extremely lucrative.
Creating financial success via property investment isn’t for everyone and it’s important to establish if property investing is right for you. Thereafter you need to determine if it is the right time to invest.
Is property investment for you?
For those who want to generate additional income purchasing a buy-to-let property can be a great idea. Rental investment property can provide ongoing income in the form of rental returns and in the long run, offers the potential for much larger returns via capital appreciation.
A potential investor should recognise that property investment is a commitment; to have the greatest financial success property investment should be a long term strategy. For those who want an investment that they can dip in and out of financially, bricks and mortar might not be the best option.
The sentence ‘real estate is real’ often resonates with investors who are keen to invest their money into something they can physically see. That does not go to say that all properties make an ideal investment – properties should be carefully considered to ensure they are suitable investment prospects.
It is sensible for investors to be sure that they can commit significant finances whilst removing emotion from decisions, in order to find success. A property that an investor might personally enjoy living in might not be the best option for the wider tenant market.
How to get into property investment
In order to purchase a buy-to-let investment property, you need to either pay the property’s price using cash or arrange financing. It is often the case that by purchasing an investment property using a buy-to-let mortgage in the long run you will see far higher returns on investment in % terms.
One of the very first steps, when you’re looking at investing in rental property, is to decide how you’ll be funding your purchase and discussing your financial options with your broker or accountant at an early stage will allow you to establish if property investing is right for you.
Buy-to-let mortgages often require a higher deposit and undergo more stringent checks than a residential mortgage – this is something to keep in mind when considering investing in property, a mortgage broker will be able to provide valuable support throughout the process.
Assemble a professional team
If you’re not from a property background it’s unlikely you’ll have a thorough knowledge of the UK investment property hotspots or have the expertise to find and secure a property that will present the very best available opportunity based on your unique circumstances. It is the case that certain savvy individuals naturally have a talent for spotting opportunities but in the majority of instances a lack of knowledge regarding rental investment results in unsuccessful investment or an investment that presents only mediocre returns and minimal potential for capital growth
A sure way to work towards investment success is to assemble a team of professionals and take heed of their advice. From mortgage brokers who can ensure you have the best product in place to maximise your returns and solicitors who are thorough and diligent to investment specialists offering guidance on where and what to buy and property management companies who can carefully select tenants and ensure upkeep of the property; working together with experts in their field allows you to gain access to valuable insider knowledge. Assembling a team of professionals puts an investor in an advantageous position.
Is UK property a safe investment?
Over the past few years’ the UK property market has proven its resilience in the face of uncertainty. Whilst there was a slowdown in activity and price growth rates steadied there has not been a fall out that other countries might have experienced under similar pressures. Rental figures increased and demand for rental property rose and continue to rise making the UK an exciting prospect for those considering a rental investment.
One of the greatest associated risks when investing in property is that the value of the property could fall, whilst you are unlikely to experience this if you make a good investment purchase it is a possibility you should be aware of. Professional property investment experts can provide predictions largely based on historical trends and plans for the local area to minimise these types of risks.
With a proven track record for growth and for investors with a long term plan in mind, the UK continues to present a safe haven for investors.
How do you know when it’s the right time to invest?
There is no crystal ball when it comes to knowing the exact best time to invest in property; there is always an ideal opportunity to be found at any given time.
Looking at locations across the entire country and taking the advice of experienced property investment professionals will allow an investor to find the right investment property at the given time in order to achieve financial success.
At any given time there is likely to be a UK property hotspot offering an ideal investment opportunity.
The right time to invest in property is when you are financially in a position to proceed.
To learn more about property investment hotspots in 2020 read our latest guide.
UK property investment
Our team of seasoned property investment experts would be happy to explore the possibilities to help establish if property investing is right for you and work together to decipher the best time to invest in rental property. We’re available on +44 (0) 2039507939 or send us an email at info@thirlmeredeacon.com.
