{"id":6037974,"date":"2021-12-06T09:42:37","date_gmt":"2021-12-06T09:42:37","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=6037974"},"modified":"2021-12-06T09:42:37","modified_gmt":"2021-12-06T09:42:37","slug":"research-become-successful-property-investor","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/zh-hk\/2021\/12\/06\/research-become-successful-property-investor\/","title":{"rendered":"“Research is key”: how to become a successful property investor"},"content":{"rendered":"

The starting point for any accomplished property investor is research, says editor Ellen Klein, but there are plenty of important decisions to make along the way, too.\u00a0<\/strong><\/p>\n

In a blog looking at how a budding property investor<\/a> today can navigate the current climate for a successful investment, editor Ellen Klein<\/a> has outlined some of the key points to consider. And the starting point for anyone making a big financial decision is probably an obvious one: thorough research.<\/p>\n

To start off the process, says Klein, it is vital to look into every aspect that will bring long-term<\/a> benefits. “Research neighbourhoods and housing prices, save up for your down-payment and ensure that you are pre-approved for a mortgage so that you can pounce when the right opportunity presents itself,” she says.<\/p>\n

While those unfamiliar with the current UK property market might still be inclined to look at ‘obvious’ areas like London<\/a> to invest, some basic research could bring about a drastic rethink. For several years now, areas like the north-west<\/a>, Yorkshire<\/a> and the East and West Midlands<\/a> have experienced booming housing markets. Parts of London are certainly still generating great returns for landlords, but there is plenty of data to show that other areas are winning out.<\/p>\n

Risks and rewards<\/h4>\n

As Klein points out, becoming a property investor is not a decision to be taken lightly. While there are huge rewards to be had for those who invest well, there are risks, too.<\/p>\n

“There is so much to consider, from operating costs and mortgage expenses to finding prospective tenants, handling maintenance and more,” she says. “Owning a rental property comes with significant risks attached, so you need to be sure that you are up to the challenge.”<\/p><\/blockquote>\n

Yet when comparing a property investment to an investment on the stock market, for example, there are clear advantages. For example, you have more influence over your property, says Klein; you can perform upgrades or repairs to attract high-paying<\/a> tenants.<\/p>\n

To borrow or not to borrow?<\/h4>\n

Being a property investor with cash can have its benefits, such as sometimes securing a lower price. However, Klein points out that it might still be worth considering a mortgage<\/a>. This is particularly the case if you plan on buying more properties at a later date, as it leaves some money aside for future deposits.<\/p>\n

Borrowing<\/a> is also incredibly cheap right now. With the Bank of England base rate still at an all-time low of 0.1%, lenders are matching their products with the low rate, and are offering numerous competitive deals. Most speculation points to a base rate rise in the near future, so buyers are advised to secure cheap mortgage deals sooner rather than later.<\/p>\n

Klein advises: “Use a mortgage calculator to start drafting how much monthly repayments, stamp duties and rates will cost you. Then, apply for pre-approval to check how significant of a mortgage you qualify for.<\/p>\n

“Remember to make it clear that you plan on purchasing an investment property. This investment is governed by different rules to those that apply to primary residences.”<\/p><\/blockquote>\n

Extra considerations for a property investor<\/h4>\n

There are a number of other things to be aware of before you take the plunge to become a property investor, says Klein.<\/p>\n