In recent times, UK property has been one of the most reliable and stable investments in the world, resulting in an influx of new investors entering the market – and one of the most asked questions by these new investors is ‘How much do I need to invest in UK property?’
UK property, on the whole, is usually for higher net-worth investors, and if you’ve not much disposable cash right now, then it may be worth considering what you are able to save up.
As the UK economy returns to a much brighter outlook this year thanks to more stable leadership from the Prime Minister and Chancellor, the market is again looking attractive to investors and those with wealth they’d like to protect and grow.
With this in mind, we’re going to list a few options for how to invest in the buy-to-let market and break down how much you need to invest in UK property with Knight Knox.
The most obvious route for those looking at residential property would be to look at the possibility of a mortgage.
Specialist buy-to-let mortgages are usually arranged for residential investment properties, and if you go to niche finance companies you can also look at the possibility of an auction property.
Ultimately, if you have a fairly small budget to begin with, a mortgage is perhaps the best idea to investigate first, as well as looking at smaller properties that may need some work.
In the longer run, these could allow you to build equity in order to increase your property portfolio and offer an accessible way to start your investment portfolio.
It is worth noting, however, that regulations for buy-to-let investors are strict and lenders have very stringent criteria for buy-to-let mortgages, including the price of the investment property and expected rental yields.
You will also need to already own your own home (this can be outright or with an outstanding mortgage), so you would not eligible if you’re a first-time buyer.
Whilst mortgages are certainly an option, it is much simpler to invest with cash, and there are few better options than off-plan property.
An option for those looking to invest with cash is to buy off-plan properties. This essentially means purchasing the property before it’s been completed, with off-plan property remaining a very popular investment with people all over the world.
Firstly the price or value of the property tends to, in most cases, increase before the property has been completed meaning that you’ve already made money on the value of the property.
Further, off-plan properties tend to be in busy and popular areas of cities and towns so you’re more likely to get a consistently high demand for quality rental income in an area where most are looking for it.
Finally, off-plan tends to be state of the art and very high quality, meaning that owners are able to get some of the best yields and best rental incomes for their properties because they’re such high quality.
How much do I need to invest in UK property with Knight Knox?
At Knight Knox, the vast majority of our properties available are off-plan properties that can only be purchased via a cash purchase.
If you’re looking for something other than student or residential, we also offer a range of alternative investments including property bonds, holiday lodges and more. You can find out everything we have on offer here.