First-time buyer guide to property investment

First-time buyer guide to property investment

Ready for your first property investment? Experience Invest provides helpful tips for those looking to buy.

Top property investment tips for first-time buyers…

  • Pick a reputable agent
    It is just as important for the agent to understand your requirements as it is for you to understand the opportunity presented to you.

An agent should be able to answer any questions you may have and provide you with background information about the investment opportunity. Investors should take their time to collect all the information they need to make an intelligent investment decision.

Look for a well-established agent who will take time to listen to your requirements. If the agent hassles you – or applies pressurised sale techniques – walk away.

  • Do your research
    It is an obvious point but it’s worth mentioning. Investors should do their own background research to ensure that they are entering a ligament property investment.

There are many income generating products available on the market, including student property and care homes, which may offer investors higher returns than more traditional buy-to-lets.

Watch video to find out more about emerging UK asset classes.
Appoint an experienced and reputable solicitor who will be able to ensure that everything is correct from a legal point of view.

Check local lettings agents for the average rents in the area and to find out what the local occupancy rates are like.

Appointing a letting agent to manage and maintain your property will help ease the stress of being a landlord. The agent will be able to take care of the day-to-day management and will take care of getting tenants housed in the property as they will have a database of people to market the house to. This approach will help to mitigate time spent managing your investment.

  • Calculate your returns

Buying a property can be more expensive than you think. Ensure you have factored in mortgage fees, tax implications, stamp duty fees, management and maintenance fees and solicitor fees before investing.

The UK’s government recently announced changes to tax relief for buy-to-let landlords. Investors should make sure that they factor in the changes to mortgage relief and the wear and tear allowances when purchasing a property.

Ensure that the property meets the required standards by asking a local estate agent to check the property is suitable for buy-to-let investments. Repairs to the property to meet regulations will cut into your returns.

Here is a useful link to a buy-to-let returns calculator.

  • What’s the plan?
    Get to grips with your exit strategy.

Whether you plan to flip your property for a quick profit or wish to receive rental return for the next few years to come, understanding the purpose of your purchase will help you to select the best option for you.

Investors should consider their exit strategy and how long they wish to have their money tied up for.

There are no guarantees when it comes to investing however, investors should consider what will happen if the market crashes or if there is a void period. Will your investment be able to weather the storm? Having a ‘Plan B’ in place can be the make or break of a successful investment.

Experience Invest offers a selection high yielding UK property investments in some of the UK’s best performing markets.