Buy to Let Property in the UK
In a stable economy, the changing social issues of the UK have been the key contributors to the rising property prices. There is now a one in three divorcé rate in the UK. Additionally, people are choosing to marry later in life leading to more and more single occupancy homes and the increase in much needed migrant workers. These factors and more have left a property shortage for a lot of people in the UK and these factors will always be a driving force in any house price increases. But such increases are also reliant on a stable economy and a stable property market. So how does a successful property investor maximise the rinvestment returns in a fluctuating market and what are the options?
Let's start at the beginning. This is an investment and in order to get any return on this investment you must be able to attract tenants whilst at the same time maximise capital growth. Property investors who take a long term investment view will know that there are always substantial long term gains to be realized with property. Also the oldest of adages about property is the key here - location, location, location!!!
Property developers call this due diligence. Making sure that the property you buy can deliver a return. Getting this right means you must consider the following;
- National geography
Where are property prices showing the steepest rises? Over the last few years these locations have not been in London or the south east. Rather they have been concentrated in some unassuming towns and regions like Hull, Huddersfield, and Stoke. Desk research is required here to monitor house prices across the country, some sources of information can be found at www.bbc.co.uk/homes/property .
- Area rationale
Having found a region or town where prices are on the up, ask yourself why. Better still ask someone else.
Again start with desk research, you'll find web sites offering information on all major towns in the country. Has a large business moved to the area bringing employment? Has the area completed a process of regeneration or been granted Government or European investment? Whatever the reasons start to build a clear rationale which can help you make a value judgment.
Chances are you may not have much local knowledge of your target area or areas. So verify your findings. Plan a trip to scout the location for yourself. Make appointments with local Estate Agents and council offices. Armed with your research you can ask the right questions to help you decide whether to continue or discount a particular area. Remember you might have to kiss a lot of frogs before you find a prince, but its much better to know now.
- Drilling down
having decided on a town or region you now need to find the right location. Most areas will have hotspots. But as an investor looking to maximise return you are looking for the up and coming areas - the future hotspots. Those areas within a town which are just starting to capture the interest, again look for signs of regeneration and investment, and a great tip is to watch out for new private residential building work - a sure sign a location is on the up.
Also think carefully about your prospective tenants, who these people are likely to be and their living requirements. For instance younger tenants will be more interested on access to leisure facilities than schools.By following these three key steps you'll be putting yourself in the best position to make your buy to let property investment work. But remember, like most investments there is risk so talk to as many people as you can. We feature many properties Our site contains lots of properties in the UK that make ideal investments with instant profit to give property investors a “head start” and give investors more for their money. This means that from the outset you will minimise risk and be able to make sound investment