Property investment is becoming a young people’s game. Records show that more young people are beginning to invest in buy-to-let property, with a year-on-year rise in applications for buy-to-let mortgages coming from 20 to 29-year-olds and 30 to 39-year-olds since 2015. No longer are people waiting until they reach a certain age to invest or viewing property as a venture reserved for those going into retirement. If you’re thinking about getting started with property investment in your younger years, here are some of the things you should think about before going forward.
Educate yourself
Property investment isn’t as simple as it can sometimes seem, so be sure to do enough research to properly educate yourself on the market. This might mean taking advice from property experts or friends or family members who are experienced within the property sector. Make sure you’re properly clued-up on what makes a good deal in buy-to-let and what steps you can take to improve the success of your investment. You should also be aware of what might be required of you after the investment has gone through. For example, if you’re planning on being a landlord you should get informed on the things that may be required of you and any legal issues you’ll need to adhere to.
Choose wisely
There is so much out there when it comes to the UK property market that it can be a bit overwhelming selecting the best opportunity for you. Make sure you research the different types of property available and the best locations to help choose the perfect investment. Decide whether you’d like to invest in a residential or a student property, as these dictate what steps to take to ensure your investment is successful.
Location, for instance, relates heavily to the type of property you choose, and certain UK cities have better prospects than others. Northern cities like Liverpool and Manchester have been ranked investment hotspots as of late, offering some of the best rental yields, lowest prices, and a high potential for capital growth. London was once considered the place to be for property investment in the UK, but since potential has diminished in the capital over the years, not to mention the soaring property prices with little returns, it makes sense to look elsewhere. RW Invest is one property investment company with a range of fantastic opportunities in Manchester and Liverpool, from as little as £45,450 with impressive 8% rental yields. With a high student population and a growing number of young professionals residing in the city centre, these cities can make a great option whatever the type of property you’re interested in.
Check your credit rating
You need to make sure that everything is up to scratch with your credit rating before taking out a buy-to-let mortgage or investment loans. Those who have made financial mistakes in the past may not realise how this has affected their credit rating. Whilst this doesn’t mean that it will be impossible to invest in property, it wouldn’t hurt to improve your chances of a smooth experience. Check your current credit score, and if it’s not up to your liking, take steps to improve it before going forward with your investment plans.
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