Investing in the buy-to-let sector is one of the most lucrative ways to make money.
There are a number of things to consider when thinking about how to best invest in property, like where you are going to invest, what type of property you want to purchase and what are the tax implications of your investment.
To help prepare novice property investor getting started, Post Office Money has compiled the following top tips:
Consider the long-term growth: If you are investing for the long-term with the aim of benefiting from market growth, make sure you know your area. Check that your hotspot has seen growth recently. In recent years many areas, particularly in London and the South East have seen growth stagnate
Know your area: It’s not just about previous market growth, what is happening which may impact future growth? Consider any investment happening locally such as new schools or big businesses moving into the area. Such investment likely signifies the area is on the up.
Know your audience: Who are you renting to? If you are buying near schools your audience is likely to be young families, so buying a one-bedroom flat just won’t meet the demand of the average family. Work out who your potential tenant is, what their needs are and make sure the investment matches that.
Get a mortgage in principle: Viewing properties and having a mortgage in principle ready will put you on the front foot, as you will be ready to move as soon as you find your perfect investment.
Ensure you know the local ‘Rate of Sale’: Knowing how fast your market is moving is a good indication of demand. This will not only highlight how quickly you will need to move to secure your perfect investment but will let you know how that market is performing. Check out the Post Office Rate of Sell tool that will tell you how quickly properties sell in cities around the UK.