{"id":9693,"date":"2023-01-24T09:03:54","date_gmt":"2023-01-24T09:03:54","guid":{"rendered":"https:\/\/novellusfinance.com\/?p=9693"},"modified":"2023-06-16T14:57:37","modified_gmt":"2023-06-16T13:57:37","slug":"beginners-investing-in-property","status":"publish","type":"post","link":"https:\/\/novellusfinance.com\/uk\/beginners-investing-in-property\/","title":{"rendered":"Investing in Property for Beginners"},"content":{"rendered":"

Investing in property is a rewarding way to generate a monthly income. If you are looking into starting your journey as a property investor, you probably have many questions. For example, how do beginners get into property? What type of property is best for a beginner? Is it a worthwhile investment choice in today\u2019s economy? In this article, we aim to answer all these questions and more.\u00a0<\/span><\/p>\n

We believe property investment is perfect for anyone prepared to do the research and plan and also has the ambition to succeed. Property investment is no longer a venture only for the rich and privileged. So read on to find out how to get started with property investing.\u00a0<\/span><\/p>\n

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WHAT IS PROPERTY INVESTMENT, AND WHY SHOULD I INVEST?<\/span><\/h2>\n

Property investment means buying a property to make a financial return on that investment. Buying a property to live in is not considered an investment. Although you may benefit financially when you come to sell the property if the value has increased.\u00a0<\/span><\/p>\n

Property investors in the UK tend to buy a property that they then let out to tenants to create a monthly income. Other investors choose to buy a property cheaply and then renovate or flip the property and sell it for a profit.\u00a0 All have the same end goal, to make a profit on their initial investment.<\/span><\/p>\n

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WHY INVEST IN PROPERTY?\u00a0<\/span><\/h3>\n

It\u2019s natural to wonder if property investment is the right venture for you. For many who choose the property investment path, it\u2019s seen as a reliable way to make an income, either as a full-time job or as a passive second income. It is considered low risk compared to asset classes like stocks and shares. This is because there is always a demand for rental properties in the UK. People will always need homes. In 2022, that demand has reached record highs.\u00a0<\/span><\/p>\n

During<\/span> Q2 and Q3<\/span><\/a> of this year, the number of viewing requests per rental property increased by 25% from 9 to 14 viewings on average. Many prospective tenants even offer rent over the asking prices to secure a rental. The average rent in the UK now sits at \u00a31,175 PCM which is an increase of over<\/span> 11% in the last 12 months<\/span><\/a> alone. Now is certainly a lucrative time to consider entering the buy-to-let market. Let\u2019s look at some of the key reasons why property investment is so popular.<\/span><\/p>\n

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CREATE AN INCOME<\/span><\/h4>\n

It\u2019s possible to earn a part-time or even full-time income as a property investor, depending on how you manage it. You can choose to buy-to-let one or more properties. Or, you might decide to try your hand at buying a property to renovate and sell. Whatever path you choose, it\u2019s important to run the numbers to ensure you will make a good return on your investment.<\/span><\/p>\n

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LEVERAGE<\/span><\/h4>\n

Investing in property means you can secure leverage, which could be in the form of a loan or a mortgage. Lenders offer more favourable terms against a property. This can open the door to future investment opportunities. Property is considered a secure investment, far less risky than other asset classes such as stocks or shares.<\/span><\/p>\n

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SAFE SAVINGS<\/span><\/h4>\n

Given a choice between stocks, shares or property, where would you feel most comfortable putting your savings? Nothing comes without risk. But if you are looking for an investment that keeps your savings safe, property has one of the best track records. Over the last decade, the<\/span> UK has seen property prices rocket by over 53%<\/a> i<\/span>ncreasing the average house price from \u00a3222,989 to \u00a3341,019. Of course, the market can change. At the time of writing, property is one of the most secure investment classes you can choose to keep your savings safe for the long term.<\/span><\/p>\n

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FLEXIBLE BUSINESS MODEL<\/span><\/h4>\n

Whether you invest big or small, property is one of the most flexible investment opportunities out there. Whether you choose to project manage your house renovation project or pay someone else to do it, you are in complete control of how you choose to manage your investment.\u00a0<\/span><\/p>\n

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TAX ADVANTAGES<\/span><\/h4>\n

If you turn your property investment into a business venture, you can claim back some of the running costs against tax. You can claim against the cost of rental losses,\u00a0 repairs, maintenance, travel and any admin costs associated with the property. Additionally, you can claim for legal fees as well as wear and tear expenditure on any furnished lettings.<\/span><\/p>\n

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So now that we\u2019ve covered some of the main benefits of property investing, let’s look at how a newbie can get started.<\/span><\/p>\n

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How do beginners get into property?<\/span><\/h2>\n

To get started as a property investor, you\u2019ll need to make a plan and define what your end goal is. For example, it could be to make a full-time business out of it or it could be part of your pension plan or to make a passive income on the side. If you plan to make it your full-time business, you will need to create a business plan, including cash forecasts and timescales.\u00a0<\/span><\/p>\n

When you are in the planning stage of buying your first buy-to-let property, you\u2019ll need to have your finances in order. For example:<\/span><\/p>\n