10 top tips for first-time buy to let property investors

27th May 2021

By Callum Ward

For the longest time, UK property has been an excellent investment class that has continued to go from strength to strength, year after year. Continued house price growth, rents increasing across the country and an ever-buoyant market in the last few years all showcase the potential of property and have resulted in an influx of those looking to take their first step into property investment.

As with any investment, it’s always important to have a clear understanding of both the process of investing, as well as what you should be looking out for. With that in mind, we’ve decided to take a look at some of our top tips for property investment in 2021!

Budget

First things first, you need to set a budget for your investment. Take a look at your personal finances and determine how much money you can afford to spend on an investment property. The budget you set will massively impact both the type of property and the locations in which you can invest. One of the key factors is deciding on whether you purchase with cash or if you need finance, this will also determine what company you can purchase from.

Research

Now that you have a budget in mind, you need to undertake some research into property investment and decide whether it’s right for you (which we would guess is why you’re reading this article!). Take a look at the market’s performance over the last few years as well as forecasts from trusted sources to get an idea of the investment potential.

Location

One of the most exciting parts of property investment is deciding on which location you want to invest. First thing’s first, you need to decide on a city or region to focus on - do you want to invest close to the capital, along the prime capital commuter belt or further North? Once you’ve decided on the initial area, you then have to decide whether you want a suburban location or a prime city centre spot. All of these will offer a multitude of investment opportunities, each with their own positives and negatives, so it’s down to you to decide what’s best for you.

Type of Property

In addition to deciding on the location, a key feature you will need to make a decision on is the type of property. Do you want to invest in a 3-bedroom house, a student pod or a 2-bedroom apartment with a balcony for example? Apartments are usually much more sought after when looking towards a city centre, whereas houses are usually much more favoured in suburban areas, and student pods are extremely popular when in close proximity to popular universities.

Off Plan Investment

When it comes to property investment, many immediately think of investing in a completed apartment. However, off-plan investment continues to be one of the most popular asset classes in the UK. Off-plan investment refers to the purchase of an apartment or house prior to its practical completion. It is usually cheaper than completed properties, and also offers the appeal of brand-new apartments when advertising your property on the rental market upon completion. You can find out more about the process of purchasing off-plan property here!

Potential Returns

Once you have decided where to invest; the type of property; and whether or not you want to invest in a completed or off-plan property, the next step is to determine how much you will need to make from the investment in order to make it profitable. It’s important to keep in mind that there are more than just the initial costs to consider for an investment property, such as maintenance costs, management fees and what you will do if you enter a void period. Luckily, many properties (particularly off-plan) offer a rental guarantee for the first few years following the completion of your purchase.

Tenant Demand

Tenants determine your income. That’s the long and short of things when it comes to property investment – your returns rely on people renting your property. With this in mind, it’s important to look into tenant demand for the type of property and location you’re investing in, to determine how much you can make. Compare similar types of properties in the area and see what they are rented out for to give yourself a good idea of the price you can charge. Also keep an eye on how quickly these properties are removed from the market thanks to a let being agreed, in order to gauge an idea of the demand for similar properties.

Property Management

Upon completion of your investment, you are now a landlord, and as a landlord you have a multitude of responsibilities that can at times seem overwhelming. From covering repairs to the exterior and interior of the property to ensuring the safety of gas and electrical appliances throughout, it is a landlord’s job to make sure that the property is fit to live in. There are, however, alternative methods for a more hands-off approach – using a Lettings Agent. Lettings Agents offer full property management services, allowing the landlord to take a step back and leave the day-to-day work to the agency instead. For more information visit https://www.intuslettings.com/landlords.

Think with your head!

It’s hard not to get emotionally involved when it comes to property investment and think with your heart. You could fall in love with a stunning apartment or a fantastic house that you would love to own, but at the end of the day, property investment is, at its core, a numbers game. The most important aspects of property investment should be the price, the returns and the capital gains available. Think with your head, not your heart.

Choose a trusted company…

Now, if you’re feeling more confident about investing in your first property it’s time to decide on who to invest through. Here at Knight Knox, we make investing in property simple. Specialising in both residential and student property, we have sold over 11,000 properties to over 5,500 individual buyers in excess of 110 countries. Our goal is to help investors find their perfect investment property, so why not get in touch today and find out what we have to offer.

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10 top tips for first-time buy to let property investors

27 May 2021

For the longest time, UK property has been an excellent investment class that has continued to go from strength to strength, year after year. Continued house price growth, rents increasing across the country and an ever-buoyant market in the last few years all showcase the potential of property and have resulted in an influx of those looking to take their first step into property investment.

As with any investment, it’s always important to have a clear understanding of both the process of investing, as well as what you should be looking out for. With that in mind, we’ve decided to take a look at some of our top tips for property investment in 2021!

Budget

First things first, you need to set a budget for your investment. Take a look at your personal finances and determine how much money you can afford to spend on an investment property. The budget you set will massively impact both the type of property and the locations in which you can invest. One of the key factors is deciding on whether you purchase with cash or if you need finance, this will also determine what company you can purchase from.

Research

Now that you have a budget in mind, you need to undertake some research into property investment and decide whether it’s right for you (which we would guess is why you’re reading this article!). Take a look at the market’s performance over the last few years as well as forecasts from trusted sources to get an idea of the investment potential.

Location

One of the most exciting parts of property investment is deciding on which location you want to invest. First thing’s first, you need to decide on a city or region to focus on - do you want to invest close to the capital, along the prime capital commuter belt or further North? Once you’ve decided on the initial area, you then have to decide whether you want a suburban location or a prime city centre spot. All of these will offer a multitude of investment opportunities, each with their own positives and negatives, so it’s down to you to decide what’s best for you.

Type of Property

In addition to deciding on the location, a key feature you will need to make a decision on is the type of property. Do you want to invest in a 3-bedroom house, a student pod or a 2-bedroom apartment with a balcony for example? Apartments are usually much more sought after when looking towards a city centre, whereas houses are usually much more favoured in suburban areas, and student pods are extremely popular when in close proximity to popular universities.

Off Plan Investment

When it comes to property investment, many immediately think of investing in a completed apartment. However, off-plan investment continues to be one of the most popular asset classes in the UK. Off-plan investment refers to the purchase of an apartment or house prior to its practical completion. It is usually cheaper than completed properties, and also offers the appeal of brand-new apartments when advertising your property on the rental market upon completion. You can find out more about the process of purchasing off-plan property here!

Potential Returns

Once you have decided where to invest; the type of property; and whether or not you want to invest in a completed or off-plan property, the next step is to determine how much you will need to make from the investment in order to make it profitable. It’s important to keep in mind that there are more than just the initial costs to consider for an investment property, such as maintenance costs, management fees and what you will do if you enter a void period. Luckily, many properties (particularly off-plan) offer a rental guarantee for the first few years following the completion of your purchase.

Tenant Demand

Tenants determine your income. That’s the long and short of things when it comes to property investment – your returns rely on people renting your property. With this in mind, it’s important to look into tenant demand for the type of property and location you’re investing in, to determine how much you can make. Compare similar types of properties in the area and see what they are rented out for to give yourself a good idea of the price you can charge. Also keep an eye on how quickly these properties are removed from the market thanks to a let being agreed, in order to gauge an idea of the demand for similar properties.

Property Management

Upon completion of your investment, you are now a landlord, and as a landlord you have a multitude of responsibilities that can at times seem overwhelming. From covering repairs to the exterior and interior of the property to ensuring the safety of gas and electrical appliances throughout, it is a landlord’s job to make sure that the property is fit to live in. There are, however, alternative methods for a more hands-off approach – using a Lettings Agent. Lettings Agents offer full property management services, allowing the landlord to take a step back and leave the day-to-day work to the agency instead. For more information visit https://www.intuslettings.com/landlords.

Think with your head!

It’s hard not to get emotionally involved when it comes to property investment and think with your heart. You could fall in love with a stunning apartment or a fantastic house that you would love to own, but at the end of the day, property investment is, at its core, a numbers game. The most important aspects of property investment should be the price, the returns and the capital gains available. Think with your head, not your heart.

Choose a trusted company…

Now, if you’re feeling more confident about investing in your first property it’s time to decide on who to invest through. Here at Knight Knox, we make investing in property simple. Specialising in both residential and student property, we have sold over 11,000 properties to over 5,500 individual buyers in excess of 110 countries. Our goal is to help investors find their perfect investment property, so why not get in touch today and find out what we have to offer.

Callum Ward

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