If you follow the property news then you may have seen many references about buy to let property investing being dead in the UK. Some of the major publications were suggesting that the notion of purchasing two, three, four or more properties to provide you with an additional income or even a retirement fund was outdated and did not make sense any more.
Recently there have not been that many stories in the press about the demise of buy to let property investment, probably because the news has been dominated by other stories that are far more important – nice for landlords to get a break for once. However this doesn’t mean that the mainstream press has changed their mind over the state of buy to let property investment.
You can do two things with this. The first is to believe it and abandon all of your plans to invest in property. The second option is to not believe everything that you read in newspapers and dismiss this as something to fill column inches. At CPI we would definitely recommend the second option!
Property Investment Has Just Got A Bit More Complex – That’s All
The only major issue recently for property investment in the UK is that it has become a bit more complex. There have been increases in the Stamp Duty Land Tax as well as changes in tax relief rules and new buy to let loan affordability criteria has been introduced. But none of this means that property investment is not one of the safest and lucrative forms of investment that you can participate in.
What you will need to succeed in property investment is a clear plan that will guide you every step of the way. You need to adopt a savvy approach when it comes to agreeing a deal and very importantly you need to be prepared to fully research and understand the market.
Be Clear On Where You Need To Start
There is no problem with dreaming big, we would actively encourage you to do that, but you need a starting point and it all comes down to the amount of money that you have to invest in property. You may have savings or ISA accounts, or if not then your personal home may have equity in it and you would be able to release funds by remortgaging. Now is a good time to look at doing this as the mortgage rates are still low.
Develop Clear Long Term Goals For Your Property Investment
The government and others have certainly made it tougher to get rich quick with buy to let property investment. A few years ago when the property prices were really soaring it was a lot easier to purchase a property and then rent it out for a while and finally sell it for a large profit.
Those opportunities were severely halted by the financial crisis. But if you are prepared to stick around in the buy to let property investment market for a few years then there is still a lot of money to be made. Have a clear reason for getting involved in property investment. You need a big “WHY” and you then need to set your goals to be sure of success.
Use Your Goals To Develop A Plan
After you have set your property investment goals then create a plan to achieve them. There are a number of things that you can consider such as conversions, Houses in Multiple Occupation (HMO) or even property funds. If you are looking for an increase in your monthly income then an HMO could be a good choice. But be aware of the responsibilities associated with each path. Looking after HMO tenants can really sap your time.
Be Prepared To Work With Experts
Your success is very dependent on the people that you work with. You will need a good mortgage broker who you can share your property investment goals with and also a good solicitor. If you intend to renovate properties then a group of trade’s people that you can trust is vital.
At CPI we can help you with your property investment goals. We already have all of the experts in place as well as vast experience in the market. In fact we can offer you a totally “hands off” property investment service. To find out more please contact us here now.