The First Time Property Investor – An Introduction
If you’re a first-time property investor, you need all the right guidance to make sure it is profitable for you. So, if you’re on the verge of making a property investment for the first time, this article will show you things to do and how you can do it successfully. Let’s see how!
Property investment can bring huge rewards if done properly. Hence, it’s important that you do your homework before jumping into it.
Of course, the procedures and legislations involved can be daunting and scary, especially to new investors. This is the reason why we have provided this simple guide to see you through the process. Here are a few of the things you need to know as a beginner:
What Is Buy-to-Let?
As the phrase implies, buy-to-let involves a process where you take a mortgage on a property with the intention of letting it out to a tenant or tenants, without you residing in it yourself. This will make you a landlord. You should be aware that being a landlord comes with many responsibilities. So, before going ahead, here are some of the questions you should try to answer:
Do You Have the Time Required to Manage a Property?
Let’s face it, being a landlord is not an easy task. You must have enough spare time which you can dedicate to future challenges arising from having tenants. Otherwise, you have to consider engaging a property manager.
Do You Have Your Finances In Order?
If you’re looking to purchase a buy-to-let mortgage, just like buying a property you would want to live in, it is important to ensure your finances are all in order.
What Is Your Area of Interest, Yield or Capital Growth?
Both rental yield and capital growth can be profitable for landlords. Study the two options and then go for the one that promises to increase your return on investment. Consult with experts to guide you on this.
Where and What Would You Like to Buy?
Location is very important when buying a property. Choosing a property with proximity to where you live versus other locations can make a huge difference to your return on investment. You need to also consider whether you’re buying residential property or a commercial property, a new build or an off-plan property, a resale property or possibly an auction property. All these factors must be considered so you can make the right choice of investment.