In our property investment seminars, we always encourage participants to ask questions – as it’s the best way to get up to speed with the realities of being a landlord. One question that comes up all the time is ‘how much money do I need to start investing in UK property?’
It’s a good question to ask… and it’s also tricky to answer. With that in mind, here’s a few things to consider when you’re working out your budget.
How Much Do You Need to Invest in Property in the UK?
Ultimately, the more money you have to invest, the easier you’ll find it to grow your property portfolio. However, that doesn’t mean that you’re necessarily priced out of property investment – it just means you may have to be more creative with your approach.
There’s a lot of flexibility when it comes to investing in property, which is great if you’re on a tight budget. For example, search for buy-to-let properties for sale that are cheap (e.g. £100,000 or below), and it’s perfectly possible to invest with a low deposit, providing you can get a mortgage.
Things to Consider
- How much can you afford? In our property seminars, we always recommend being sensible with your investments. Never invest more money than you can comfortably afford – it isn’t worth the risk.
- What mortgage can you get? If you’re planning to use a buy-to-let mortgage to fund your purchase, you’ll need to check to see just how much you can borrow. The decision will be based on a number of factors, including any other sources of income you might have.
- Have you factored in other costs? Remember, UK property investment isn’t just about purchasing the property itself. You have to factor in other costs, such as insurance, maintenance, improvements, letting agency fees and mortgage fees. A good financial advisor may be able to assist with this.
What’s the Most Effective Way to Make Good ROI?
Of course, every property investor’s goal is to generate a good return on their investment. However, it’s not enough to simply purchase a buy-to-let property for sale – you need to have a strategy in place. For example, buying an initial property, making improvements then selling for a profit, is a good way to start growing your property portfolio – but you may find it handy to work with a property investment agent, who can give you direction on which property to invest in.
We’d always recommend working with an expert when you’re building a property portfolio – particularly if you’re new to investment. A property investment agent is a sure-fire way to boost your ROI, and they’re definitely worth their weight in gold.
The Buy2Let Shop
If you’d like to attend one of our property investment seminars, simply visit The Buy2Let Shop website today for further details (and to book your spot). Our website also contains information about all our services, which include help with buying a house at auction, and identifying the ideal buy-to-let property for sale to match your budget.