UK Property Investment Tips

Teaching you all the steps and guidelines you need to know on how to become a property investor.

FAQs

  • Unfortunately, you need funds to build funds, especially within the property market. Investors starting, especially if seeking finance will need to be in a position to place a 25% deposit down of the price, this is driven by mortgage provider requirements when seeking a mortgage. if you are a cash buyer then around £50,000 +, depending on the property model and location you target of course.

  • Purchasing legal costs within the UK average around £1,500 from experience but again will heavily depend on the services you require of the solicitors. Stamp duty also if purchasing a second property within the UK is currently at 3% of the price you pay, for example, £100,000 you will pay £3,000 stamp duty. furniture packs if you wish to acquire one will range from £2,500 to £6,000 again depending on the property size.

  • From experience property owners who have bought in their names will pay the tax associated with their tax band, for example, if you are paying 40% tax on your salary, you must also be aware you will be taxed on the rental income at the same rate assuming this doesn’t increase your overall income to the higher band rates, it is wise to check how the rental income will factor in with your salary.

  • In some cases yes, this will depend again on the mortgage provider. From experience, we do advise clients to buy their own homes first since it only adds credibility with mortgage providers.

Research

Knowledge when trying to plan out your first or additional property investment strategy is key, anyone with the right budget can find a property to purchase, however it is those investors who don’t pin themselves down to one area and understand the strategies available are the ones most successful.

“Establish all the relationship’s you can it will open up more possibilities’”

Compare

Banks can only offer you mortgage products they have on the shelf, independent mortgage brokers (financial advisors), will have access to a variety of products and different rates. Nothing is preventing you from speaking to a few in the hope to compare and select the best offering for you, mortgage interest rates will change all the time.

In any town or city, local estate agents are like hairdressers you will always find multiple agents competing locally, compare the services they offer whether that is to sell a property or purchase. The service we offer sourcing purely investment properties again go and compare what type of business relationship they will offer you.

The property deals themselves, every property will offer various perks it could be purely aimed at capital growth or high rental income generator. this is all about what you want to achieve out of property investing, is this something short-term or something you plan to retain for the future growing a property portfolio?