UK house prices buy-to-let mortgages property investment

8 steps for successful property investment

Achieving success through property investment takes time and research. Having a strong plan can help you achieve the best outcome.

Property investment can be extremely lucrative, with bricks and mortar being a favoured option thanks to its relative stability compared with other investment options.

Whether you’re investing in property for retirement, or you’re looking to boost your income through rental returns, creating a clear plan from the start can help you achieve the most positive result.

At BuyAssociation, our property investment consultants can help you come up with a plan that takes into account what you can afford as well as your long-term investment goals. Below, you can find more information about what steps you should take before investing in property.

 

 

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1. Decide your property investment goals

Think about why you are investing in property, and what you hope to achieve. This might involve setting short-term and long-term goals, which will inform the duration of your investment and whether you might expand your portfolio in the future or just stick to one property.

Short-term, you might consider property flipping, where you buy cheap, potentially renovate to boost value, then sell for a profit. You can read more about this here. Alternatively, you may also wish to gain short-term positive cash flow through rental returns, alongside your main income.

A common long-term goal is investing in property for retirement. This might involve selling up when you reach retirement age to get a cash boost through any capital appreciation, or continuing to rent a property out in order to supplement your pension income.

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2. Research different property types

There are pros and cons to all property types, starting with the choice between residential, commercial and industrial. Each will have different costs associated as well as a wide range of potential for returns.

At BuyAssociation, we specialise in residential property investment. Within this field, there are a few different property types to choose from, including:

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3. Choose a top-performing location

It might be a cliche, but location is one of the most important factors when considering property investment. Whether you opt for a location close to home so you can self-manage, or choose one of the UK’s best performing locations, you should do your research to help you calculate costs and potential returns.

There are numerous factors to look at to help you choose an ideal property investment location, including:

  • Job growth: Looking into job statistics and business relocations will give useful insight into tenant demand. If job opportunities are growing, so is the demand for housing.
  • Diversification of industries: Find an area with a diverse array of businesses, industries, and educational establishments. People at different levels of income will be employed in these industries. As a result of diversification, you will be able to rent out your property at an appropriate rates and protect yourself from fluctuations in the rental market.
  • Regeneration: There are many UK cities undergoing regeneration in order to attract business, residents and tourists. Should a city have these projects in the pipeline, you can be confident that the location will be growing economically.
  • Transport links: Think about how easy it is to travel from one city or town to another. Are there many Metrolink options? Is there an airport nearby? How regular are trains and buses out of this area? Think about the convenience for both yourself and your tenants – it’s important people can travel with ease.
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4. Will you need a buy-to-let mortgage?

While being a cash buyer can save you money on mortgage interest payments and setup fees, it is common for investors to use borrowing to spread the risk and help them diversify their property investment portfolios.

You can secure a competitive buy-to-let mortgage with the help of a broker. Be aware that most lenders tend to require a 25% deposit (so a maximum loan-to-value of 75%), and rates can be higher than standard residential mortgage rates. Many buy-to-let lenders also require a gross rental income of 125% or more of the mortgage payments.

Even if your property investment is more niche, such as an HMO, off-plan or new-build, you should be able to secure borrowing to help you make your purchase. The process for securing a buy-to-let mortgage is largely the same as a standard one.

 

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5. Don’t forget your tax obligations

There are numerous taxes you’ll need to pay linked to your buy-to-let property investment. Some landlords and investors use an accountant to handle this side of things, but it’s vital to have enough knowledge of taxes in order to be able to manage your budget.

The main taxes you are likely to need to consider are:

  • Stamp duty land tax (SDLT): This currently (as of April 2025) applies to all properties purchased at a value of £125,000 or more. For property investors or second homes, a 5% surcharge is added to the stamp duty bill.
  • Income tax: The income you receive as rent is taxable, and you’ll need to declare it as part of your self-assessment tax return via HMRC. There are certain allowable expenses you can deduct, which you can find out about on the government’s website. If you invest in property through a limited company, you pay corporation tax instead of income tax.
  • Capital gains tax: This is a tax paid based on any profit made when you sell a second home or investment property. Learn more about this here.
EPC rules rent rise energy efficient rental

6. Prioritise future-proofing

Now more than ever, tenants are looking for a higher standard of living in their rental homes – and a good landlord’s job is to provide it. The increased focus on energy efficiency in recent years is set to solidify into law when new minimum energy performance certificate (EPC) standards come into effect across all rental properties in 2030. This will mean all homes must achieve a rating of C or higher, and will significantly boost standards in the market.

Consider various tenant trends when thinking about future-proofing. Right now, the rise in popularity of build-to-rent is an important trend to be aware of. This property type offers tenants additional benefits and amenities – they tend to be modern, well-equipped rental homes within purpose-built blocks designed with renters in mind. They offer communal spaces including social areas, workspaces, and often outdoor areas or rooftops. Tenants are willing to pay more to live in this type of accommodation – which is something to consider when choosing your own property investment, and ensuring it is as desireable as possible for future tenants.

7. Do the maths

It goes without saying that you will need to work out your budget when you first start on your property investment journey, whether you’re able to buy with cash or are planning on borrowing to buy.

But there are numerous other costs to be aware of, and it is important to weigh these up while also calculating your potential returns. Common buy-to-let running costs include:

  • Mortgage costs
  • Landlords’ insurance
  • Lettings and management fees
  • Repairs and maintenance
  • Safety requirements, such as gas safety certificates and electrical safety checks

You also need to work out your yields, which is the average amount of rent you can expect to generate from your property, divided by the purchase price. You could ask a local letting agent for help with working out your likely rental income based on local market data. This will help you understand what profits you could make from your property investment.

Capital appreciation is another crucial part of this. Although it is not possible to know how much your property investment will increase in value over time, look at local growth forecasts to work out the likelihood of strong capital gains.

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8. Consider using a property investment consultant

A property investment consultant can work with you to decide on your short-term and long-term goals, analyse your budget and requirements, and find an investment that’s tailored to you. You’ll benefit from their specialist market knowledge, access to data and analysis, and existing relationships within the industry that can benefit you.

At BuyAssociation, we have built up strong relationships with some of the UK’s most reputable developers, with access to off-market opportunities and attractive discounts to help you maximise your potential returns. We focus on the UK’s top-performing towns and cities, staying ahead of any market shifts and trends to ensure we can always offer lucrative investment opportunities.

All our services are completely free of charge for investors, with full transparency throughout the process, and no hidden fees. Get in touch with BuyAssociation today to find out more about what we can offer.

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