With interest rates currently at an all-time low, and the stocks and shares market often volatile due to the ongoing pandemic, investment in property has seen  a renewed surge.

But successful property investing – especially for newcomers to the market – comes from ‘finding the right team to work with and guide you along the way’. In this month’s Focus On we chat to two regional experts to help you identify, and achieve, your goals.

 

Mark Pereira, director, Resonate

What makes now a good time to consider property investment?

Interest rates are at record-low levels and, for those with long-term savings goals, property can provide a steady reliable income and the potential for capital growth.

Who is investing in property and what is the most successful way of doing so?

Those looking to make what is widely considered to be a safe investment over the longer term are turning to property to help build a successful financial future.

Before investing in property, it is imperative to understand that you are setting up a business, even if you only plan to purchase one buy-to-let property. You have obligations and responsibilities as a landlord and must be sure to understand the risks as well as the rewards before investing. Successful property investing comes from finding the right team to work with and guide you along the way.

What are the first steps that someone investing in property (especially for the first time) should take?

You should first understand why you want to invest in property. What are your long- term goals and how long would you like to invest for? Being able to answer these questions is key to your success. Working with established property investment businesses can help you to identify your specific goals, prior to investing.

How can you help investors and what tips would you give a first-time investor?

We have been investing in property collectively for more than a decade and now help investors from all over the world invest their money successfully into property.

We can help you:

  1. Identify what type of properties you should invest in and why.
  2. Find the right properties to invest in and understand the numbers.
  3. Negotiate the best price from the seller and see the sale through to completion.
  4. Refurbish, let, and manage your property over the long term.

What is the most important thing an investor needs to consider during the process?

Remember that investing is a long-term game. While it is possible to make money relatively quickly in property, the biggest wins find you over the longer term.

 

James Holding, regional auction manager, Auction House South Yorkshire

What makes now a good time to consider property investment?

As we are all aware, interest rates are currently at an all-time low, meaning investors are receiving little to no interest on any savings, and the stocks and shares market has often been volatile due to the ongoing global COVID pandemic.

Investment in property has therefore seen a renewed surge, as opposed to having money saved away for a ‘rainy day’. Prices within the Sheffield City Region have continued to rise so now is a fantastic time to make the leap as either a first-time landlord, developer or add to a current portfolio.

Who is investing in property and what is the most successful way of doing so?

Property investors come from a variety of backgrounds and the most successful are open to purchasing through a variety of difference routes including on and off market, property sourcing agents and, of course, auction!

There are benefits and drawbacks to each of these routes, but we are finding a lot of investors are now solely buying through auction due to the speed and certainty it offers – largely due to being able to avoid the lengthy, time-consuming, and often extremely frustrating conveyancing process.

Auction completely bypasses this and the most popular route of purchase is via an immediate, unconditional exchange of contracts on the fall of the gavel, giving certainty and peace of mind to both buyers and sellers that both parties are legally committed to the process.

What are the first steps someone investing in property (especially for the first time) should take?

Research and speak to as many property professionals as you can and enlist the services of a reputable and, ideally, personally recommended solicitor. They will be able to provide you with the legal advice you need and advise you in respect of any purchase.

If buying via auction, we would always recommend you read the legal pack provided and inspect the property prior to purchase.

How can you help investors and what tips would you give a first-time investor?

Know your budget and be clear in relation to your expected return, making sure to take into account all of the costs associated with a purchase, which can impact your financial return or yield. These can include purchasing costs, legal costs, Stamp Duty Land Tax, as well as any potential refurbishment costs to ensure the property is legally fit to rent out.

For example, the government is in the process of tightening up the regulations in relation to Energy Performance Certificate ratings for rental properties, as well as the introduction of Electrical Installation Condition Reports (EICRs) so ensure you do your research!

What is the most important thing an investor needs to consider during the process?

The additional costs – make sure you work out a realistic and comprehensive breakdown of costs associated with an investment purchase, including allowing for future maintenance and potential void periods to ensure you are not left out of pocket.

You May Also Like