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Successful property investment in the UK relies on one principal factor – your ROI. If your profit margin isn’t sufficient, you won’t make much money from your buy-to-let property, and in the worst-case scenario, you may even find yourself out of pocket.

To ensure a good return on investment, it’s vital to locate the right property for your purposes. Your property search is one of the most important aspects of establishing a business as a landlord, and if you find the right house or apartment, the rest will come a lot more easily!

In our property seminars, we often discuss how to identify the perfect investment property in the UK. Here’s some great tips to get you started.

Property Investment Seminar Tips – Conducting Your Search

  • Identify the right area. To find the right property, you’ll need to do extensive research first. It’s not enough to simply identify the right town or city. You’ll also need to know which streets are the most desirable, which areas are within easy reach of transport links, schools and amenities – and so forth. If you’re not familiar with the area, visit as soon as possible. Talk to locals (there are many useful online forums that help with this) and property investment agents. Get as much information as you can to ensure you’re looking for houses in the right place.

 

  • Select a target market. Before viewing properties, make sure you know who you’re trying to attract. Students value very different things to families, for example! Work out which sort of tenant is likely to generate the highest return on investment, but bear in mind, this also includes calculating expenditure as well as rental yield. A young professional may be happy to pay more, but they’ll expect you to spend more on higher-end fixtures and fittings!

 

  • Set your price. Work out a realistic budget, and remember to factor in all future expenses too. For example, if you’re using a letting agent, they’ll require monthly payment. You’ll also need to pay for insurance and other costs too.

 

  • Work out your priorities. As with any property search, it’s likely you’ll have to compromise at some point. Before viewing any properties, compile a list, identifying your top priorities, followed by less important (but desirable) property attributes. Remember, think like a tenant, not a homebuyer – work out what will appeal to them, not you!

 

  • Be critical. As with any form of business decision, you’ll need to adopt a critical approach. In short, don’t let your heart rule your head! Think purely in terms of financial profit, both in terms of rental yield and longer-term capital growth.

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