Long-term property investment is one of the most common ways to invest your hard-earned cash.
When you are new to it all, it can seem a little like a minefield, so what are the best practices? Here we delve a little deeper into getting started in property investment.
So, why do people invest in property?
With savings interest rates hitting record lows in the last 12 months, you may find yourself looking elsewhere to make the most out of your funds. At the same time, the demand in buying rental property in the UK is higher than it’s ever been.
Rightmove forecasts that the UK market will see a 4% national average price growth in 2021, compared with a forecast of an 8.5% price growth in the north west, according to experts. It is also believed tenant demand is set to increase, due to individuals rethinking what they want from their home after 2020’s lockdown, with current supply struggling to keep up with demand.
If you are looking for a long-term investment, you can earn a healthy income by letting out your property to the right tenant. Alternatively, if you’re looking for a more short-term investment, then buying and selling for profit could be the way forward.
How to get started in property investment
In terms of starting out in property investment, it’s important to know there are many types of investments offering good capital growth to consider, including:
- Real Estate Investment Trusts (REITs)
- Student property
- Property development
- Buy-to-let investments
- Commercial property
- Short-term purchases to sell on for profit
We did mention it could be a minefield! It doesn’t have to be, though. While some of these may be self-explanatory, others may not. Let’s start by discussing REITs.
REITs is an investment fund that is purely invested in property and nothing else. This is often a great way to get started in the world of property investment, simply because instead of owning the property yourself, the fund does. These funds are made up of many other investors, so you’re not going in this alone. As you don’t have the responsibility of owning the property yourself, this investment is much easier to get out of, should it not feel like the right one for you.
More often than not, REITs give people the property investment buzz, with you reaping the rewards based on how the investments are doing and on rental income generated.
If however, you prefer to reap the rewards of your investment for yourself (who doesn’t!?) then property purchase could be the way forward for you.
Buy-to-let investments in high yield areas like the ones you can find on our properties page are a great place to start. With a healthy income per annum, as well as net yields of up to 11%, they’re a great way to invest your cash.
Is there a perfect investment?
Contrary to the belief of some property consultants, the honest answer to this is no. There is no “one size fits all” approach to property investment. This is something we’re happy to work together with you and guide you on, understanding your goals and priorities.
It is imperative that you think about your investment’s objectives and find a property that’s right for you.
If you’re still unsure what the right investment is for you, then a simple question may help you to decide: are you looking to generate quick lump sums of cash or are you looking for a steady monthly income?
If quick lump sums are what you’re looking for, then a buy-to-sell investment could be right for you. Buy-to-sell prevents the need to deal with tenants and maintenance of a property and means you won’t have to worry about the long-term health of the property market.
However, if a steady monthly income is what you’re looking for, then look no further than a buy-to-let. Buy-to-let properties give you the opportunity to reap the rewards of a regular, steady income from your investment, while also being in a great position for further gains in future years, should you wish to sell
What are the benefits of a property consultant?
Whether you’re a rookie looking to buy your first BTL property or have an established portfolio, property consultants have a wide range of benefits for all investors. A good property consultant will ensure they have done the hard work for you – finding investments that are: forecasted to experience major growth; focussed on achieving high yields; have a strong rental growth and more.
All of our investments are located in cities forecast to experience major growth over the next five years. Our focus is to ensure your investment gets you the highest possible returns, with all our opportunities aiming to increase your property portfolio and ensure your investment journey is a success.
More about MPP Invest
We are a consultancy for property investors, we are proud to source high-yielding UK-based property investment opportunities for all of our clients.
With over 40 years combined experience in the UK property industry, our expert advice is the perfect addition to any property portfolio.
If you’d like to know more about our exciting investment opportunities, get in touch with the team to see how we can help today.