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If you’re new to investing in property in the UK, you might be understandably nervous. After all, it’s a major investment and you want to make sure that you get it right – and generate a solid ROI.

Here’s some tips to help you get started, and to help you avoid making some of the more common mistakes along the way.

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  • Don’t go it alone. If you’re totally unfamiliar with the world of buy-to-let investments, don’t dive in without support. If you’ve got a friend who’s already a successful landlord, ask for their guidance. Alternatively, attend property investment seminars and network with people in the industry. Remember that you can also work with a property investment agent, who will help you throughout the entire process.

 

  • Read up before you buy. There’s no rush to find the perfect buy-to-let property for sale. Before you start scouring the market, take some time to do your research first. Head to your local library and read some books about being a property investor. Read relevant industry publications to keep up with the latest news. Attend events and seminars. Ask questions on line. In short, do as much as possible to bring your knowledge up to speed.

 

  • Identify the right location. Location is everything in the world of property investment. Work out if you want to generate a higher rental yield, or if capital growth is more important to you. This will affect your search considerably. Once you’ve located a few places that you’re interested in, we recommend visiting them in person – this will give you a real feel for the area.

 

  • Work out what sort of tenant. Take a while to figure out who you want as a tenant. Students, for example, are great for HMO properties, and you can really maximise your rental yield. However, they may not treat your property with the same level of respect as an older couple. Young professionals are likely to pay a premium, but they’ll expect a high standard of accommodation in return. All tenant demographics have their plus points and their negatives – it’s just a matter of working out what’s right for you.

 

  • Sort out your finances. You’ll need more than just an initial deposit to get started in UK property investment. You’ll also require cash for necessary improvements, mortgage fees, insurance, ongoing maintenance and more. Work out how you’ll raise the funds, and your projected cash flow in the future. A financial advisor or property investment agent may be able to help with this.

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