5 Top Tips for Getting Started in Property Investment

Posted by Connect UK Auctions on 26th March 2021 -

'There are so many different factors to consider when getting involved with property investment but by ensuring you do your research the outcome can be hugely profitable.

The first key points to consider are:

• Where to invest
• The type of property you’d like to invest in
• Whether this is a one off or if you’re looking to start your own portfolio

1) Are you looking for a 'buy to let' or a 'buy to sell'? 

The answer to this will depend on whether you are a property Trader or an Investor. Are you looking buy property, refurbish and sell on? If so, this would be known as a property flip and makes you a property trader. If you are looking for a buy to let, you are an investor. A buy to let is a longer-term investment which is bought for different reasons. 

2) Compare residential property and commercial property 

Although residential maybe the obvious answer, commercial property can provide a sizable rental income too. Commercial property generally carries a lower stamp duty and land tax. If vacant for some time the vendor maybe more likely in accepting an offer pre-auction. The biggest disadvantage on investing in commercial property is that it can take longer to secure a tenant thus leaving you with a longer empty period, however the advantage is that tenants tend to stay for long periods of time. 

3) Understand what’s involved 

The saying, ‘Fail to prepare and prepare to fail,’ comes to mind here. Depending on your investment strategy you must understand the rules and regulations when it comes to, not only the investment itself but also to any tenants that you may be taking on and your responsibility to them also. Regulations will depend on whether you buy into a freehold or leasehold property. A commercial or residential property. A vacant or let property. Remember, there are always experts about should you have any queries, questions or concerns. 

4) Network with other investors 

After all, who knows better than those with extensive experience? Now networking doesn’t necessarily mean attending property events but by just adding yourself to relevant property groups over social media there is a mass of free education, tips and advice you can tap into whenever you have some spare time. 

5) Focus on your goals and your strategy 

It is important that you evaluate your exit strategy even if you are a long-term investor. Ensure you buy into property that fits with your strategy. Yes, you may want to keep the property forever and pass on to your children but there may come a time when you need to sell or even to release some equity for another investment. Bare this in mind when choosing the right deal.