Investing in Property

Investing in Property Opportunities In The UK

According to a recent government survey there are 750,000 unused homes in the UK waiting to be brought back to life and that number doesn’t include the vast number of run-down houses that are still lived in. These properties represent a golden opportunity for someone who is disciplined and organised to make a tidy profit.

The most important thing for any prospective property investor is to have the right financial backing. Before you even consider buying a property, work out what you can afford and what sort of returns you’ll need to make a good profit by checking out Santander’s mortgage payment calculator.

High Yield Property Rental Return

If you’re looking for rental return you should look for houses that can offer high yield. Yield is the rate at which you’ll earn back the money you’ve invested. So, if you spend £100,000 buying and doing up a house, and earn £10,000 a year in rent (after all fees and expenses) your yield is 10%.

Now, because of the way that the market works, getting high yield properties is only possible if the underlying house prices are low, so if you live in the south east, you’ll struggle to make fast returns on rental properties. However, in certain parts of the country, a 10% yield is common, and this represents brilliant value for money, because in ten years, not only will you have earned all the money back that you originally invested, but you’ll also own the house, which you can sell on for a tidy profit.

Investing in Expensive Property

In places where house prices are more expensive, a better option is usually to sell the property on. London, for example, is very expensive, but if you can do a house up to a nice standard and sell it on, you could make truly significant profits. The key is not to spend more than you have to on a renovation, people often get carried away and spend masses on little details, what you want is a good, solid standard of finish and not to spend too much, that way you maximise the value of your house without cutting into your prospective profit too much.

Unless you’re fortunate enough to be able to buy properties up front, you’ll need the right bank to help with your developments. Most important is to get a mortgage where you don’t have to pay a huge penalty if you pay the money back straight away. Or, if you’re going to rent the property, a good buy-to-let mortgage will help you maximise your earnings.

Property investment is not for the faint-hearted and you should never buy a house without knowing any prospective problems. Always have a good look round first, and make sure you get a survey done so you don’t run into any unpleasant surprises.

So What Is The Next Step?

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