Property investment is one of the most significant assets currently in the UK. It adds billions of pounds to the economy each year. Many people consider embarking on a property investment venture, however are unsure how or feel uncertain about the prospect. Make sure you follow these simple guidelines to ensure the process can be as smooth as possible.

Research the best areas

The UK is blessed with an array of prosperous cities, that may feel you feeling a little overwhelmed with the choice of multiple locations claiming they possess the greatest rental yields. It is imperative to spend some time before you commit to a specific area, to discover whereabouts will be the most lucrative for you. Northern cities like Liverpool and Manchester have established a secure reputation as a true investment hotspot for 2018. There are several contributing factors that dictate the success of investment across these cities. These include a growing population, demand for quality, and increasing capital growth.

Get in the mind of your tenant

This is a key strategy to really understand the what your target tenant requires. If you are interested in investing in properties for students, for instance, it is important, think about what the student may want from their accommodation, such as being close to extensive transport links or being in walking distance to university campus. These demands are somewhat changing so it is important to be aware and keep up with any emerging trends. The 21st Century student favour more of a luxury standard. Spacious city centre apartments are on the rise over the old cramped style student accommodation halls students have become accustomed to. Alternatively, if you wish to rent to families then proximity to high achieving schools may be at the top of the list. Researching the changing demands of each type of tenant is key in ensuring your void periods are kept to a minimum, which is great news for investors who wish to keep their return on investment high.

Which property is for you?

There are multiple types of properties that are available for investment, some more lucrative than others. Deciding between off plan, new builds or period properties is just another point to think about, as all come with their own advantages and disadvantages. Those who prefer a property with a little history may like to invest in period properties, however these are often not as energy efficient as a new build may be, producing higher maintenance costs. New build properties are said to save around £624 a year on energy bills.

Off plan properties present a multitude of different advantages, low prices, strong potential for capital growth, and popularity with tenants, however these will not be appealing to those investors who are in the search of a completed property. Property investment companies like RW Invest provide an extensive portfolio of both new build and off plan opportunities. These are an enticing prospect for many investors as they offer a significant savings at below market value entry prices.

Consider your finances

Finance is important to ensure you don’t leave yourself short. From the outset you need to devise a financial strategy, and work out essential elements such as potential rental yields that can be obtained, the amount of tax you are likely to pay, which have changed this year so be sure to double check this, and whether or not you will require a mortgage for your purchase, as quite often investment companies reject purchasing with a mortgage and deal with cash buyers only.