With the market seemingly exploding in popularity at the moment, it’s reasonable to see why more and more are wanting to hop onto the property investment train.
But how exactly do you make the leap, and what’s the best way to go about it?
One of the most popular strategies is buy-to-let investment.
The use of this method stretches back decades, but it seems to grow increasingly more prevalent as time goes on.
In the UK, as of 2021, this is probably the top method to collect the best possible results from a property. With a combination of rising house prices and demand in the wake of the COVID-19 pandemic, this past year has seen a massive buy-to-let investment boom in the UK.
What exactly is Buy-To-Let, though, and how do you know if it’s right for you?
Here’s a handy guide to answer all your burning questions!
To put it simply, buy-to-let investment involves – if you can believe it – buying a property with the intention of letting/renting it out to a tenant.
Investors make money from the rent paid by a tenant, so when everything goes smoothly, you can have a solid stream of long-time, reliable income on your hands with often minimal pressure.
Working with a property investment company will, whilst seemingly costly, probably be your best bet if you’re looking for a relatively hassle-free experience. These can offer to carry a massive chunk of the heavy lifting, sorting out solicitors, providing you with the best possible ventures and assisting in whatever issues that may arise throughout the entirety of the process.
You can, of course, choose to do all this alone –no judgement! – but if you’re looking for an easy way to get started, this is almost definitely something to consider.
One of the biggest reasons investing in buy-to-let property is so popular is that it’s a great way to earn passive income.
For those looking towards retirement options, this will probably be music to your ears.
In property investment, one of your biggest allies will be Capital Appreciation.
Simply, this is when the value of a property increases over time.
In the past year or so, as mentioned, there has been a massive leap in both property prices and growth – with there being almost no evidence of it stopping.
In the UK, for example, the residential property market is predicted to see a rise of 19.9% in rental growth across the country in the next five years.
Still, need a little more convincing?
In May, an average home in the UK was valued at around £254,624. Looking back at the previous numbers, this is an increase of 9.98% in the last 12 months alone. Especially when you consider that just the year before, the country was in the midst of its most significant economic drop in almost 3 centuries, you must admit that this is a tiny bit impressive.
Where do you look?
With buy-to-let, the key to success is to buy with head, rather than buying with your heart.
You must do your research.
Know your area and, more importantly, what people are looking for. Make sure you’re buying somewhere in demand, not necessarily somewhere that you’d want to live in yourself.
At the moment, for instance, cities with strong regenerative efforts are seen as being particularly desirable. Developments like Crossrail and other amenity-led projects that provide residential, commercial, and efficient mixed-use spaces are prime examples of this. Efforts such as these can directly impact public opinion, demand, and in turn, property prices.
It seems like if you keep the people happy, apparently the numbers will be as well.
Is Buy-to-Let a good investment?
To keep things brief: buy-to-let is one of the most profitable and continually growing markets to invest in currently.
As property value and demand continue to skyrocket over the next couple of years (fingers crossed!), this is also probably the most affordable it’s going to be for a long time.
Get involved now, and you’re almost definitely guaranteed to reap the reward in the future.
As with anything in life, however, it pays to be careful. Keep up to date with all the latest trends, listen to the experts, and (maybe) liaise with a property company to help ease the process.
Most important of all, try not to panic so much.
After all, it’s just a pile of bricks and cement at the end of the day!