Property investment and starting your own buy-to-let property portfolio can seem very intimidating. There can be a lot of complicated language and terminology, as well as unnecessarily intimidating discussions around finance, interest and other areas.
That being said, it needn’t feel this way and investing in UK property right now is probably the most stable and profitable investment strategy around, especially if we consider the volatility of the stock market, crypto, gold and other commodities.
Of course, it’s unlikely that this volatility will continue into the longer term, however, it’s really quite hard to tell when the situation will improve especially with the war in Ukraine.
There are now more than a few wealthy young professionals who are looking at starting their own property portfolio in order to combat inflation, as well as growing their money and earning a passive income. Here are a few tips on how to start your own portfolio.
First and foremost you need to understand what you’re going to be willing to spend. Your budget for your investment will inform the location, the type of property, and the type of asset you’ll be looking to invest in.
Work out your budget
For example, if you’re looking to spend less than £100k, then auctions may be a better way for you to be able to invest in property at a lower entry price, despite them requiring a little more work.
There are also, for example, tenanted resale properties that are sold by companies such as yieldit, in areas that have a lower price of entry, such as the North East, which has very high returns on rental properties.
You may be able to get some finance agreed via a mortgage or bridging finance, for example, which will allow you to work with a bigger budget. If you’re looking at closer to £200k or above then this allows you to take a look at the off-plan property market which can be much more lucrative as a long term investment.
Off-plan properties in popular urban centres tend to appreciate much quicker in value, so capital appreciation is very much an option for the first addition in a property portfolio.
Once you’ve got a better understanding of the budget you can afford, you’re in a stronger position to know what types of property investment you’re able to obtain.
This is especially true if you’re just starting out in property investment, where you may need good and reliable advice about the first steps to take.
Speak to the specialists
We know from our extensive experience over years that those looking to invest in their first property often need guidance to find the right property for them. We’re experts at explaining the pros and cons of certain developments, investments or areas.
We operate and sell properties all over the UK and our team have been doing this for years, so if you’re only just setting out on your investment journey perhaps the best advice we can offer is to go and speak to somebody who knows what they’re talking about. Start by having a read of our First Time Investment Property page and gain a better understand about the buy-to-let market.
It may be the case that you need some more information about your options, about finance or to go and take a look round at some potential investments, these are all things we can do, so why not get in touch today?