“The main concern most of us have for your retirement is: when we stop earning a monthly salary, where is our regular income going to come from? Well, depending on what you buy and how you let it, property can deliver anything from a pension top-up to a monthly income that exceeds what you earned as an employee. That’s why increasing numbers of people are now using property as their primary investment vehicle.” – Nick Fox
If you’re interested in making a financial investment in property, then we have a little introduction to what’s involved.
Here is the process you’ll follow to get started in property investment and how you’ll earn an income from this method:
- To purchase a buy-to-let or house of multiple occupancy (HMO), you will most likely need to take out a buy-to-let mortgage with a cash deposit. Make sure that you look around to get the best mortgage deal and finding someone more experienced in the world of property to help you source the right investment is helpful.
- There are 2 ways that you can make money from your investment – rental yield (which is the money you take from your tenants each month in rent) and capital growth (when you sell your property on and get some profit if you’re able to sell it for more than you bought it).
- Bear in mind that costs you will likely incur include survey fees, solicitors’ fees and stamp duty. You may well need to renovate and refurbish parts or even all of the property if it requires it. In the case of purchasing a potential HMO, you will need to spend some cash on making it fit for purpose.
- Taking out landlord insurance and buildings insurance is key, as these will protect you if anything goes wrong with the property.
- Renting property out brings you a regular income, which you can either use to supplement your current income or invest the money in developing your property portfolio.
- Houses of multiple occupation (HMO) do require more management as you have several tenants at any one time but it does mean that you will always have rent coming in from the property and won’t feel stuck if one of your tenants decides to move out.
Check out our website to find out more about the great resources that we have available to help you on your property investment journey.
Nick Fox started his property investment career 10 years ago and his portfolio has grown to one of the largest in the UK. Nick now mainly focusses on HMOs (houses in multiple occupation) and works to help others achieve property success too. Visit here to find out how he can help you.
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