There is a big difference between being a landlord and being a property investor, and this is something you should ask yourself when thinking about buying property. The other aspect to keep in mind is the “why”. Why you want to be a property investor is important because you can decide if its to add some extra cash to the end of the month or to become financially free or perhaps to save for your children for their future.
The good thing is, you can be both landlord and investor. The difference however is that landlords have to deal with tenants constantly, chasing them to pay rent on time, getting things fixed, and upgraded, click here to find out more details about this. On the other hand, if you are an investor, the difference is that you typically hire someone to do this for you. Somehow the second option seems less of a hassle, so we will divulge a little more information on this option.
Becoming A Property Investor
Something as big as this investment will most likely take some time depending on your budget and how much cash on hand you have plus if you still need to apply for a mortgage or not. Although it doesn’t happen overnight, once your ready, there are a few tips that you may find helpful. Keep reading to find out more.
Tip #1. Buying an Apartment Over A House
Historical, apartments and flats have been seen to have a better return of investment https://www.bmmagazine.co.uk/in-business/how-to-become-a-successful-property-investor/, if you invest in a house, you will no doubt make a profit, however, the apartments will make a better option for the “Buy To Let” market, and more so in popular areas where they will have a higher demand.
Tip #2. Go for The City
The highest rental yields, will most often come from city centres. Besides this, because of the multiple educational institutions, medical facilities schools and retails stores, the demand will always be higher than in the quieter rural areas. This makes for good student accommodation as well. If you are inclined to go for that audience.
They may be slightly higher in price than other areas but they will also sell for just as much or even more. All the aspects including the transport links, accessibility, all work for it as opposed to against it.
Tip #3. Knowledge Is Power
Ever hear the saying “knowledge is power”, well there is no better-suited scenario than in becoming a property investor. Gaining knowledge on the local areas, especially if you are a first-time investor will provide you a pathway to better investing. As the experts at Thirlmere Deacon will tell you, you can buy a property and get it renovated and still reap the benefits when you sell or re-mortgage it. The right knowledge will help put the structure in place for future purchases.
Tip #4. An Off-Plan Property
One can even gain some momentum from an off-plan property. This may sound like a risky endeavor, however, even though something isn’t fully constructed yet you can easily get an early bird deal, which enables you to pay half the price it would have been once construction is complete. One can easily use VR technology to see what it will look like when finished. You can gain large amounts of capital appreciation in just a few short years.
Tip #5. Low Mortgage Rates
As mentioned above in Tip#3, knowledge is power, and those who do their homework the first time around can turn 100,000 into a million pounds instantly. The strategy you create will work alongside low mortgage rates. Some cities can do that for you, places such as Leeds or Liverpool for instance, have much lower property prices than for instance a place such as London. Buying cheaper and slightly away from cities may be a good idea for your first assignment, and to get a feel of things.
We hope that the above 5 tips will help you not only decide if it’s the right investment for you, but if you have made up your mind, that it helps you get closer to becoming one of the best property investors around the globe! Happy hunting.