Investments in real estates in UK have continued to command considerable attention both in the UK and across the world, for the simple reason that this is a resilient market with property in some of the world’s fastest growing and popular cities. This attractiveness has pushed up the competition for prime properties, which promise good returns in the medium to long-term. If you are looking to start investing in real estate, or expand your portfolio, here are some tips that will be very useful.
Prioritize areas under regeneration
Freshly regenerated areas offer affordable property with the possibility of gaining value fast. Council neighborhood upgrades, new and expanded transport hubs are some of the factors that pull people into previously overlooked neighborhoods. Look at different local councils’ plans for regeneration and map out potential hotspots.
Give preference to flats
Flats are more flexible as buy-to-let investments. The fact is that with good planning, you can convert a flat into a flatshare with higher rental income than a townhouse. Real estate experts opine that the two-bedroom two-bathroom flat is the hottest buy-to-let property in the market.
Property to add value
Look for low priced property where you can add value with additional features or conversions. This will earn you higher rental income once the value is added, for example, a spacious flat above a shop can be added value with a loft conversion.
Go for property auctions
Keeping clear off estate agent listed properties is a smart choice. This is because there is higher competition for this property from buyers who may be buying the property as a home, and are ready to commit more money out of emotions. The agent will also push the price up for his commission. Auction properties offer better prices.
Consider your target market
Your tenants will largely be drawn to your property in consideration to the lifestyle options and amenities in the area. If you are targeting young professionals, you need to be in an area with an easy commute, several bars, shops, and gyms. Compare your target market and the area.
Beware of the costs and the yield
If you are buying the property on financing, consider the costs of servicing the loan. There are other general expenses for the property including levies and taxes. There will also be management and collection fees. A quick assessment would be to see whether the property will be yielding over 10%. Ensure that the gross is enough to cover your expenses lest you are stressed to pour in more cash in the investment.