Property is probably one of the most popular investment opportunities at the moment, with many budding investors taking advantage of the recent market boom to secure rather lucrative ventures.
Investing in buy-to-let property, in particular, is a well-known method that has been proven to – when done correctly – bring home some really solid returns.
The idea behind it is relatively simple: You buy a property, rent it out and then sit back and watch the cash roll in. It’s the dream, right? But is it really that easy?
Well, if you need more convincing, here are four things you need to know about buy-to-let.
Is it seriously that easy?
In short, if you do things right, the buy-to-let process is relatively simple to wrap your head around – especially if you work with an investment company.
Whilst you may think it’d be easier – and cheaper – to go solo, these companies are almost definitely be worth considering.
Essentially, they can make the process almost entirely hassle-free by taking on a massive chunk of the heavy lifting – i.e., dealing with solicitors, passing on strong opportunities, as well as assisting in whatever speedbumps that may pop up throughout the entirety of the buying stage.
Of course, it is entirely up to you, but working with an external company like this definitely takes a whole deal of pressure off your shoulders.
Know your area
Now, it may be tempting to just throw money at whatever two-bed apartment pops up first, but, like many things in life, it pays to be careful.
Research is your best friend in investment and is vital in securing the strongest opportunities.
In property, where an asset is located plays a key role, and nothing makes a spot more lucrative than population growth.
Regeneration helps massively in this department, with projects that improve aspects like local infrastructure and transport usually indicative of somewhere with the potential to become a top investment hotspot.
To keep it simple: A previously rundown city is transformed into something a little bit nicer.
The result is that the city becomes a better place to live, and properties there can, consequently, boast some of the highest rental demand.
Take Luton, for example.
This UK commuter town was, in the past, almost generally agreed to be almost utterly unremarkable. However, the introduction of regeneration schemes like these has caused a massive boom in rental demand and price growth and caught the eye of keen investors.
Of course, if you refused to do the research, something like this would be very easy to miss.
Also, speaking of the UK and price growth…
House prices in the UK are (still) on the rise
As stated, the property market is booming.
In the UK especially, there have been some remarkable leaps.
Defying dire expectations last year, the market saw record-breaking rises in the wake of the various lockdown procedures. Flash forward to now, and there is very little to suggest that will change any time soon.
For example, in May of this year, the average UK home was estimated to be valued at around £254,624 – an increase of about 9.98% in the last 12 months alone.
When you consider that not so long ago, the country suffered the most significant overall economic output drop in almost 3 centuries, it might be just a little difficult to deny how impressive this is.
With the latest forecasts also pointing towards another jump in price by a further 21.5% in the next five years, now more than ever might be the best time to get involved.
If you’re looking for a retirement plan, this might be a great bet
Another one of your friends in property investment is capital appreciation.
On a very basic level, this is the increase in the value of a property over time. As you can imagine, it is one of the most appealing aspects of property investment overall – especially for those looking towards retirement.
If you’re patient and rent out a property for a few decades, you can likely sell it on for a considerable profit.
If you get started now, with the prices probably being the best they’ve been in a long time, your future self may just be grateful.
Hopefully, you now know a bit more about buy-to-let property. The biggest takeaway from this is that research is, like in anything, the most important thing you can do.
So, if you’re ready to jump in, do some. And then, do some more! With money on the line, you can never be too careful. Take the time, consider your options and – probably even more critical – try not to panic too much!