How to Become a Successful Property investor: Everything You Need to Know
One and Only are here to explain the essential steps on becoming a successful property investor.
There are many advantageous reasons as to why to invest in property. Instead of having your capital staying stationary in the bank with the current interest rates, you should consider pursing the property market. Property prices are always rising and a great venture for investment regardless of your current financial situation.
When investing in your first property you will have to view it with a business mindset, allowing you to assess the property and calculate a potential ROI. There are two main figures you need to focus on when dealing with properties, Return on cash investment and yield. A great way to easily view these metrics is through our website as we accurately calculate these for you.
Seek Professional Help
As with anything new that you have endeavored on, a hobby or job, seek professional advice. The market will always fluctuate, and different areas may become hotspots. We advise you to prepare for it. During anyone's time as a property investor, they will make mistakes and have setbacks. Minimise this potential risk by talking to a professional and by keeping in contact with them. We do offer a one to one mentoring with limited spaces so please get in contact.
Laws and Regulations
As an investor, you need to stay up to date with market changes, trends, pricing, laws, regulations and terminology. Laws and regulations are a massive thing in the property market, not adhering to these is a risk and can ruin any reputation that you have built up.
Here is an excellent article on the Laws and Regulations: https://www.forbes.com/sites/garybarker/2019/03/29/2019-property-rules-and-regulations-what-agents-and-landlords-need-to-know/
Another major factor to consider when buying property is your tenant profile. Things to consider with your tenants; Who you are looking to rent to? How many bedrooms and bathrooms your tenants would need? What they will need in the property? Local amenities? How much rent can your tenants afford? If you ask all these, you should be on the right path to your golden property.
Start to research your target area, become an expert on the local area around your property. This will help when it comes to marketing your properties key features whilst it is on the letting market.
Buy To Let Mortgage
When investing in your first property a buy to let mortgage is a big thing to take into consideration. This can make the process straightforward. A buy to let mortgage is like a regular mortgage, you can take a loan out on a buy to let property which will be calculated on the rental income.
While this option is great and can be a way onto the property market for people that otherwise wouldn’t be able to, however with off-plan properties it is not possible to obtain without putting down a larger deposit, usually around 25%.
Diversity in your Portfolio
As discussed in another of our blog posts “Furnish or not to furnish?”, you will need to decide whether, based on your tenant profile, you want to furnish your property for your tenants or not. It is also dependent on what kind of responsibilities you would like to have as a tenant. This also falls under wanting to boost your properties value, this could be adding new window frames, redecoration, fixing damp areas or structural issues and adding high-quality central heating systems.
Finally, we advise expanding your portfolio and making it diverse. By having a diverse portfolio filled with lots of different properties it can help you minimise potential risks and maximize cash flow.
One and Only's in-depth Tools
If you are just starting or a veteran property investor, One & Only offer in-depth statistics and a unique rating system that score properties based on their capital appreciation. We also offer ROCI and yield statistics.
Here at One and Only we put the tools, knowledge and experience normally available only to seasoned investors, in the hands of anyone with an internet connection. Instead of listening to biased advice, or spending hours calculating and comparing, One & Only finds the best property investments instantly. From first time buyers who want to find the best deal, to investors looking to build their own property portfolio, we make it easy to choose the perfect property.
Here is a short video by Amar from One and Only explaining Property Rules and Regulations.
If you are a seasoned investor or complete beginner in the property world, we offer a 7-day free trail for all investors. This allows you to view properties that withhold the highest yields and capital appreciation for your future investment. Sign up through the link below.