UK Property Investment

Property investment has been largely responsible for the incredible economic boom Britain has experienced over the last decade. British buyers have bought property domestically and internationally with the ultimate aim of making money. Many other countries, where credit is relatively cheap and easy to access, have seen a surge property investment, through local buyers and foreign investment. Of course, the impact property and the related credit markets have had on the current global credit crisis are well documented, but property still offers great financial returns. The main reason is leverage – effectively, using other institutions or peoples money to purchase assets which accrue in value.

The key to sound property investment is research. There are a multitude of financing options and a vast number of points to consider before committing to property investment. We aim to give you confidence in undertaking the process of deciding what you hope to achieve through your property investment, analysing opportunities, sourcing property, financing the purchase and ensuring sound legal practices. Here are some points to consider:

What do you hope to achieve through property investment?

Are you hoping to build up a varied and valuable asset base for the long-term, or looking to specialise in an investment vehicle that offers constant cash flow? Perhaps you want to make small but frequent margins on single property purchases? Your first step is deciding what you hope to achieve through your investment. 

With your overall aim in mind, what is the best investment vehicle to achieve this?

Buy-to-let, buying off plan and ‘flipping’ property, commercial property or land investment? What about fractional ownership or buying as part of an investment club? Once you know what you hope to achieve you can consider which investment vehicle is best.

Once you’ve decided on the best investment approach, what next?

Research the market and seek out opportunities. What type of property or properties should you buy? Where should you buy – locally or internationally? What’s the state of the market and what price represents good value?

Once you’ve found a few properties that satisfy your investment criteria, what should you do?

Look at financing options. Do you simply go the mortgage route, or are there creative financing opportunities you can investigate? What will offer you the greatest returns? Also, this is the point at which you devise your exit strategy should anything go wrong.

There are many secondary factors to consider when taking your first step in to property investment. What impact will any property investment have on your tax situation? Can you meet interest payments if global economic conditions take a dip and credit becomes increasingly expensive? If your investment strategy centres on a buy-to-let approach, do you have an adveritsing budget to find and replace tenants?

This is a basic, top-line approach to property investment but always remember that research is key. There are a multitude of factors to consider before making any purchase.

Some useful links Property investment tips:

www.property-investment-tips.com

www.propertyinvestmentproject.co.uk

www.russwhitney.co.uk