There are many options available to you as you start out in property investment, but some will bring more success than others.
Here are 7 things that we think you should know about investing well –
- Consider houses of multiple occupation (HMO). These offer the best return on your investment, owing to the fact that you will receive more than one lot of rent per month. Many single and professional people who are unable to get on the property ladder are interested in HMO as a housing option. It also means that if one tenant decides to move on, you’re not left at risk of losing money while you find a replacement, as you have more than one source of rental income.
- Be patient and choose investments wisely. Making the right decision on the property to go for is essential if you are to get a good return. If you’re new to the game, make sure you get some good advice. Here at Nick Fox, we offer a Property Sourcing Service which takes the guesswork out of the process. Negotiating the best price is also key here, as an over-priced property can have a negative effect on your profit margin. Again, we can help you to broker the right deal.
- Shop around for the best buy-to-let mortgage. This is one of the best ways to keep your costs to a minimum. Make sure you do your research and don’t just opt for the first deal you find. Do your research on the internet rather than turning up in a bank or building society branch where you’ll get the sales patter.
- Look after your investment and try to add value where you can. More bedrooms mean more tenants (and rental income) and a property that is well-presented will be sought-after by prospective tenants.
- Manage your expectations! Rome wasn’t built in a day and neither is a property portfolio. Focus on the long-term income rather than what’s happening in these first steps and you’ll have a better perspective of the investment.
- Be aware of the importance of carrying out tenant checks and keeping inventories. This is one of the most effective ways of protecting and looking after your property so that you don’t have issues with tenants disputing the amount they receive back from their deposits when they choose to move on.
- Be sure to take out the best landlord insurance to suit your requirements. Then you know that you’re covered if anything goes wrong.
Property investment is a great journey to be on, with the scope to make a great return on your investment. We hope this guide has been helpful. Don’t hesitate to contact us if you need advice or guidance as you start out.
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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