We all want to make money in life, right? Absolutely. That’s why you visit this website and regularly read all of the great articles you find here. Being that you are already attuned to a variety of money-making strategies, the point of this post is to introduce you to investing in property. You can make money in
For the record, this post will deal with investing in residential property. We’re talking buy-to-let investments that can provide you with a steady income for the rest of your life. Rest assured that you do not have to be independently wealthy or have a perfect credit history to get started. Keep reading to learn more.
Get to Know Some Mortgage Brokers
The one thing that trips up a lot of would-be investors is the mistaken belief that it is impossible to get good mortgage deals on rental properties. This is just not true. Not only are good mortgages readily available, but you don’t have to go through a bank or building society either. In fact, going that route is probably the worst possible option. A better strategy is to get to know some mortgage brokers.
Independent mortgage brokers in the UK are certified financial advisers with special experience and knowledge in the mortgage sector. They have access to all sorts of mortgage deals perfect for buy-to-let scenarios. Their expertise and knowledge can be very helpful for more complex rental investment deals such as mortgages for houses in multiple occupancy (HMO’s) or deals with borrower-friendly low-income mortgage criteria that generally make it possible for would-be investors, otherwise unable to get bank loans, to still buy investment properties.
Look for the Right Properties
The second mistake would-be investors make is searching for properties through standard channels – like estate agents, for example. This is a bad idea inasmuch as it is nearly impossible to find houses at the right prices through these channels. No, you want to find off-market properties that estate agents aren’t showing.
Off-market properties are foreclosures, properties being sold at auction, quick sales, and the like. These are the kinds of sales where you find the lowest possible prices on very good properties. And just like you are going to use a mortgage broker to find the right kind of financing package, it is best to use a specialist broker that focuses on the buy-to-let market to find them.
Look in the Right Areas
Finally, rental property is more successful in some areas of the UK than in others. You and your broker should be looking in locations where the rental market is strong, rental housing is in high demand, and prices are historically stable. University towns and cities with strong industrial and tourism environments immediately spring to mind.
Making It All Work
You can make money in property by starting with a single house and gradually building a portfolio. You start with one house capable of generating enough rent to pay your monthly mortgage, handle maintenance, and put a little extra money in your pocket. After a couple of years, you use the equity in that property to purchase a second property. Then you simply repeat the process as often as you like, until your portfolio reaches a size that you are comfortable with.
The beauty of buy-to-let property is that it rarely decreases in value as an investment. Property prices themselves may fluctuate, but rental markets have consistently remained strong in the UK, especially since the 1990s. As long as there is a housing shortage in the UK, there will be a strong need for rental property. As such, investing in buy-to-let properties could be the basis for a very strong portfolio that provides income for the rest of your life.
- Your Guide to Launching a Vacation Rental Management Business
- How to Become a Freelance Mortgage Broker
- How to Become a Customs Broker
- What is OPM or Other People’s Money?
- Tips on How to Best Prepare Your House for Short Term Rental