Property Investment: Where do I start?

1. Property Investment: Where do I start?

2. Property Investment You’ve undoubtedly heard success stories of how property investment has given your peers financial and lifestyle freedom. But investing in property also comes with a degree of risk and responsibility, so it’s important you know what to expect if you’re eager to invest in property for the first time. This detailed blog post explains how to invest in property, the varied opportunities that are available to you and everything you’ll need to consider before you take the plunge!

3. Is property investment worth the money? Property remains a solid and secure investment, despite the economic uncertainty brought on in recent years. Most recently because of the covid pandemic. Property prices in the UK have relentlessly skyrocketed since 2020, with the stamp duty ‘holiday’ fuelling buyer demand, with nationwide growth of 8.8% reported in the Halifax’s June 2021 price index. On the other side of the market, rental demand has also increased, as tenants look for bigger spaces so they can work from home.

4. How much money do you need to invest in property? How much capital you need to invest in property will depend entirely on: ● ● ● On the strategy you’re adopting Your budget Where you’re looking to buy For buy-to-let properties and development homes, you’ll inevitably pay more for a property in the South West, especially London. However, rental prices in the South West are also higher, which could be a positive financial gain. It’s important to weigh up your spending budget against the returns and yield you’re looking for. Whatever, and wherever, you decide to buy, you’ll need to factor in at least a 25% deposit, as well as all the other costs involved in buying a property.

5. How will you finance your property investment? First things first, consider how you’ll pay for your first buy-to-let property. If you’re hoping for a buy-to-let mortgage, you’ll need a hefty deposit. Most buy-to-let mortgages currently require at least a 25% deposit. That means for a property costing £400,000, you’d need a deposit of £100,000. Buy-to-let mortgages typically have higher interest rates too, so you’ll need to factor in how well your potential rental income covers your monthly mortgage payments and other costs.

6. Consider hidden costs As well as your buy-to-let property’s purchase price, you’ll also need to factor in smaller costs such as: ● ● ● ● Survey costs Solicitor’s fees Insurance costs Stamp duty (if applicable)

7. How you’ll manage your buy-to-let property Once you’re in a position where you’re ready to buy your first rental property, you’ll need to start thinking about how you’ll manage it. Or, you might want to consider if you’ll get someone to manage it for you. Maintaining beautiful properties is great, but staying legally compliant is the single most important part of being a landlord. Effective property management in London should have a significant impact on your business. After all, they will be taking care of the administrative side of the job, even including screening for tenants to ensure that you will only be getting high-quality ones. While many landlords do this privately, by using a letting agent’s management services, you can help ensure that you:

8. How can I invest in property without buying? Real Estate Investment Trusts (REITs) enable you to invest in property without actually becoming the owner of the asset. Instead, you invest in the trust that buys up properties and rents them out in the same you would if you were to become a landlord. You’re then paid dividends based on how the trust’s properties are performing. Because of the way returns are paid to investors, REITs come with certain tax stipulations, so always consult with an independent tax advisor before investing.

9. We can help with all of your property investment queries Oasis Living properties are all serviced professionally and regularly to meet a good and efficient standard. We work a lot with our landlords to continually update and improve the efficiency of all of our properties. Find out more on how we can help you improve your property letting experience by visiting our tenant page. We offer great London properties for tenants of all shapes and sizes, with affordable rates and great locations!