Investment in Property
Is Investment In Property Still A Good Option For UK Investors?
Investment in property might seem like a good move. Historically, the value of property has continued to appreciate over the long term, despite occasional short term dips. Here's what you need to consider when thinking about property investment.
One of the first considerations for those who are contemplating property investment is what kind of property to invest in. This will vary depending on local housing market conditions and the sector that you are planning to target. For example, people who are considering investment in property for the student sector will probably be interested in terraced houses, which can easily be converted into self contained rooms for students, with shared kitchen and bathroom facilities and a communal lounge.
Investment in property for the student sector can bring a good return, as a fair proportion of students will rent whilst at university. While some of these live with parents and others in university accommodation, there are still enough students left to make property investment for this market a viable proposition.
At the other end of the scale, at least in terms of fixtures and fittings, is investment in property for young professionals. These will expect upmarket finishing, so properties may cost more to bring up to the right standard. On the other hand, investment n property of this type can be lucrative, as they command high rents, particularly in the city centre. There is also a market created out of the new trend for flexible working. Many people maintain a main residence, but also need somewhere to live during the working week. This has proved a lucrative niche for investment in property.
In order to get the most out of investment in property, it is important to seek advice on the best property for investment in a particular area. This can come from your local letting agent who will know exactly what type of property is most suited to residential lettings in the area. The letting agent will also be able to advise on fitting the property to meet prospective tenants' requirements.
Property Investment Mortgage
When looking to make an investment in property, one of a landlord's main concerns will be getting a BTL mortgage. This is relatively simple, with several lenders and deals available for both new and experienced BTL landlords. New buy to let landlords who are thinking about property investment will usually have to have some form of income and should expect to make a deposit for their BTL mortgage of around 25 per cent. More experienced landlords may be able to self-certify or use one of their other properties as collateral for the BTL loan.
Finally, anyone who is making an investment in property will be thinking about its value. Buy to let offers both short term income through the collection of rents and long term income through capital appreciation over time. The current buy to let market is buoyant, with demand from different market sectors. According to some pundits, there's never been a better time to make an investment in property.
