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.
Here are 5 tips for property investment in 2020
1. 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.
2. Know your area
It’s not just about previous market growth, what is happening now? That 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, which is a good indication that the area property prices will go up in the near future.
3. Know your audience
Who are you renting to? If you are buying near schools, your audience is likely going 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.
4. Get a mortgage in principle
- Get a mortgage in principle.
Viewing properties and having a mortgage in principle ready will put you on the front foot, as you’ll be ready to move as soon as you find the perfect investment.
5. 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.
We wish you all the best with your property venture. We hope you found it useful, and if you did please feel free to share it amongst your friends and family! If you’ve got any questions, let us know in the comments below!
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