Buy-to-let Property Investment
All our investment resources to help educate you on your next property investment
Disclaimer: We are not financial advisors, before any investment we recommend you speak with accountants, mortgage advisors and financial advisors with FCA regulation. However, we are property investors ourselves, with a large portfolio of properties, and are always actively investing in more properties. All our information is based on our own experience as examples to how we have become successful.
Looking to get into property investment full time or just to diversify your assets? There is a lot to learn but the first question to ask your self is are you wanting to build a portfolio and willing to put a lot of your time into it, or even go fulltime into investing into property.
Or are you just looking to put your cash into property assets for returns on rental and capital appreciation to stay ahead of inflation?
Choose one?
Follow the advice which relates to you by understanding what you are looking to achieve. You may be an active or passive investor.
Active - I am looking to invest fulltime and build a portfolio
If you are wanting to become a proffesional property investor and go full time then a Buy, Refurb, Refinance model may be worth exploring. In which case start to educate yourself. This has huge potential and when done correctly can become your full-time income, with many investment experts becoming very wealthy through these kinds of strategies.
Passive - I have extra cash and I wish to enter the property market but not looking to get into it full time
If you don’t have time and are a working professional, then chances are you will just want an easy hands-off property which will be fully managed. These are often off-plan and new build properties that are very little hassle once purchased. They will allow your capital to stay ahead of inflation whilst providing you a rental income. Great for long-term security of your money.
We will mark some sections of this guide with an Active or Passive tag, if it is (Active) then it is information for a fulltime investor wanting to build a portfolio, if it is blue (Passive) then it will be suitable information for a hands-off investor. Most information will be relevant to all investors.
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Recommended Need to know information
Risk when investing in property
How much cash do you need to invest in property?
Biggest property investment mistakes
How to setup a property company step by step guide
What health and safety are a landlord responsible for
Investment essentials
Short-term vs long-term investment property?
Costs of letting out your buy-to-let property
How to appraise a property development (Active)
How to appraise an off-plan buy-to-let opportunity (Passive)
Why UK Property Market has so much stability
What is refinancing and how does it work (Active)
Off-Plan Vs 2nd-Hand Property Investments
Your guide to Bridging loans as a property investor (Active)
What is an FRI Lease
Best tenants for your investment
Different ways of financing a property investment
Why invest in Eco property
Holiday Buy-to-Let Property Investment
HMO buy-to-let property guide (Active)
Choosing a location to invest
9 Best locations to invest in student property (Passive)
Best UK Locations to Invest in Property
Manchester Property Investment Guide
Liverpool Property Investment Guide
Birmingham Property Investment Guide
Preston Property Investment Guide
London Property Investment Guide
Blackpool Property Investment Guide
Sheffield Property Investment Guide
Useful investment Tip articles
9 ways to increase rental value (Active)
How landlords can protect themselves in a recession
How to spot a property investment scam (Passive)
How to deal with squatters in your property
25 step due diligence process before investing in off plan property (Passive)
Should you buy furniture for your investment property
Investment Strategy walk-throughs
How to invest in property with less than £50K
How to invest in property with less than £100K
How to invest in property with less than £150K - £250K
Refinancing vs Selling as a Property investor as an investor (Active)
How to release equity and raise funds to build your portfolio (Active)
Rent to Rent Property Investment Guide (Active)
Make your buy-to-let property investment appeal to as many renters as possible
How to increase the value of a property (Active)
Passive Property Investment Strategy Guide (Passive)
Should you invest in property during a recession
UK International Investors
Investing in UK property as a foreigner
Other Useful Resources
Guide to Property Investment Courses (Active)
Property portals and auction houses to search for investment property
Rental Yield calculator
Fix and Flip Calculator
Stamp Duty Calculator
Current Investment Opportunities
Property Shares Multiple Locations
NET Yield 11%
- Corporate Guarantee
- Fixed Income
- Exit Strategy
Prices From £25,000
Michigan Towers
Manchester
NET Yield 6%
- Five-star facilities
- 999 years leasehold
- 1, 2 & 3 bedrooms
Prices From £202,995
Cheltenham Place
Manchester
NET Yield 7%
- Mixed-use
- Prime location
- Studio Apartments
Prices From £119,995
The Boulevard
Birmingham
No Ground Rent
- City centre location
- Fully Managed
- 1 & 2 bedrooms
Prices From £208,135
Liverpool Waters
Liverpool
5% Yield
- Waterfront Location
- 128 Apartments
- 1 & 2 beds
Prices From £148,068
I Quarter
Sheffield
6-10% Net Yields
- 28.8% Capital Growth
- Completed & Instant Income
- Studios, 1, 2 & 3 beds
Prices From £95,095
City Green
Solihull, Birmingham
8% Yield on STL
- Fully Managed
- Completion Q2 2023
- Short Term Lets
Prices From £182,000
The Exchange
Preston
81% ROI over 5 yrs
- City centre location
- Fully Managed
- 1, 2 & 3 bedrooms
Prices From £135,000
Holiday Lodges
Various Locations
NET Yield 8%
- 105% 5 year buy-back
- 2 weeks personal use
- Luxury & UK wide
Prices From £129,950
Heathside
London
999 yr Leasehold
- Completing Q4 2023
- Extensive Amenities
- Studios, 1 & 2 beds
Prices From £425,000
The Triangle
Ashford
NET Yield 7.3%
- Completion Q1 2023
- 30 mins to Stratford
- 1, 2 & 3 bedrooms
Prices From £185,000
Uptown
Manchester
Riverside Location
- Central Manchester
- Roof terraces & gardens
- 1 & 2 bedroom
Prices From £233,565
Digbeth One 2
Birmingham
Circa 5% Rental Yield
- Heart of Birmingham
- Furnished & Managed
- 1, 2 & 3 bedrooms
Prices From £281,000
Manchester Waters
Manchester
NET Yield 6%
- Waterside development
- Luxury amenities
- Studios, 1, 2 & 3 beds
Prices From £129,995
Recommended Need to know information
Risks when investing in property
What are the main risks when investing in property and what can you do to avoid these risks. different investments can come with different risks. Read the full article here.
Some of the main risks to consider…
- Off plan property comes with the risk of not being built or built on schedule
- Build quality of new property could be low
- Major property condition issues such as unforeseen subsidence, rising damp or leaking roof.
- Low vacancy rates
- Damage to property due to tenants
- Poor property management
- Large amount of cash needed to invest
- Bad investment location
Ways to reduce property investment risk…
- Research the area you want to invest
- Ensure you have a 10-year build warranty on new build and off-plan properties
- Underestimate your yield and calculate your finances from this
- Visit the property before investing
- Get surveys of the property done
- Research previous sold prices f the property and properties in the area
- Research the local rental market
- Have a good management company
- Buy with a trusted developer
For are full guide in what risks to look for and how to best reduce these risks when investing in property read our full guide…
How much cash do you need to invest in property?
We have enquiries everyday with people looking to invest with almost no money at all to those with multi-million-pound funds. How much you need is a difficult question and can vary greatly. Read full article here
If you were to go for a rent to rent strategy then you could invest from close to nothing.
If, however you are looking to buy a property then we typically recommend an investor would need from around £35,000. This will consider a 20% deposit, legal fees, Stamp duty and other various fees. We have done a full breakdown of all the costs where you can calculate for yourself how much money you need.
Biggest property investment mistakes
No matter how experienced you are you are always open to investment mistakes. However, the more experienced you become the less often mistakes occur. Read full article here
At Fabrik having built our own large portfolio we have made all the mistakes over the years, but we have been successful as we learnt from these mistakes.
- Paying too much
- Choosing the wrong builder to help refurb or develop a property
- Choosing the wrong management company to look after your property
- Investing with the wrong business partner
- Underestimating how long an investment can start earning you income
- Underestimating finances and costs
- Buying off-plan property form the wrong developers
- Misunderstanding rent guarantee offers
- Investing in the wrong location
- High ground rents
- Signing contracts without due diligence
- Buying property with a short lease period remaining
For full details on the biggest mistakes and how to avoid them read our full guide by clicking below…
How to setup a property company step by step guide
Setting up a company to invest in property is easy and straight forward and involves only a few basic steps. Read full article here.
- Choose a name
- Go to Companies house and fill in all the company details
- Setup a bank account
- Register with HMRC for tax purposes
There is obviously lots of information you will need to complete these steps, if you want a more complete walkthrough of everything you need then read our full guide by clicking below.
What health and safety a landlord is responsible for
As a landlord/owner of a property which is rented out to someone else, you will ultimately be responsible for the safety of the occupants, regardless of if you have a management company in place or not, this is also why it’s important to have a good management company. Read full article here.
There are also some exceptions and grey areas, for example if you have and FRI lease tenant / commercial business in your property. But below are the basics you will want to have covered.
- Gas Safety
- Electrical Safety
- Fire Safety
- Responsibility of repairs (covers major building defects such as structure and sanitary fittings)
- The Housing Health and Safety Rating System (covers areas such as mould, leaky roof, broken boiler, poor security etc...).
Among all these responsibilities is more detail about what you need to cover as a landlord, to find this information read our full guide on health & safety responsibility as a landlord.
Investment Essentials
Short-term vs long-term investment property?
Some properties you invest in may give you the opportunity to rent out on a short-let or a long term let basis. Or maybe you are looking to invest in either one of these opportunities. Each comes with pros and cons. Read full article here
Some quick overviews of the 2 investment strategies…
- Short-term lets give opportunity to earn much higher yields
- Long term lets will typically be cheaper to manage
- You can use short-term let property yourself
- Long term lets provide a more stable occupancy rate
- Short-term let’s can be seasonal in comparison to long
These are just some of the moan points strong long and short-term rentals. For a full in-depth guide in which to pick go to our full guide…
Costs of letting out your buy-to-let property
Your main cost as a landlord when letting your property will likely be a fee you pay for a management company. Depending on the level of service they charge and the location this could be between 5%-15%. Or you could manage the property yourself. Read full article here.
The costs can be quickly broken down…
- Management costs
- Advertising (may be included in management)
- Maintenance
- Operating costs
- Insurance
- Accountancy
- Refurbishment costs
For a full break down on how much each of these cots read our full guide.
How to appraise a property development (Active)
If you are looking to develop or undertake a large refurbishment project, then you will need to do a full appraisal on the finances to ensure there is a profit in it for you. Read full article here
The Basic steps are…
- Work out the gross development value, so the end value of the property
- Take away about 30% of this value to get a rough budget idea of how much you can spend
- Remove all other costs to get your potential Net value
A lot more is involved in working out a good investment opportunity as a hands-on active property developer/investor. To read the full appraisal break down guide go to our full process.
How to appraise an off-plan buy-to-let opportunity (Passive)
A hands-off investor looking for a passive income will typically be looking for an off-plan opportunity which will come more like a packaged investment product at a below market value. Before investing you will want to do heavy due diligence on the development and developer to ensure the investment is right for you. Read full article here.
A quick overview of the steps you need to take
- Research the developers track record
- Check planning permission status on local council website
- Research the funding of development
- Research the price and rental values on offer to compare to similar local properties and the overall market
- Research the local area and its potential growth
- Research to confirm the product helps to fill a demand in the area
This is just a quick bullet point list, but for full details and more step-by-step guide on what we do ourselves read our full guide.
Why UK Property Market has so much stability
UK is known to have one of the most stable property markets in the world, with London leading the way. Read full article here
Key reasons why UK property market may be so stable…
- Education System
- Strong job market
- Globally renowned legal system
- Infrastructure
- Geography
- Safe place to park money
We go into further details about all these points and what facts and data back these up which you can find in our full article.
What is refinancing and how does it work (Active)
Refinancing is simply a process where a mortgage provider or bank will put a new mortgage on your property with its latest value, which allows you to withdraw the additional value as cash in return for a new mortgage agreement. Read full article here
This technique is used repeatedly by professional investors to build large property portfolios with essentially the banks money, most commonly in development and refurbishment investments. In our full article we go into detail as to how this works.
Off-Plan Vs 2nd-Hand Property Investments
If you are looking to invest in property, chances are you have been offered several off-plan opportunities in addition to searching and finding many 2nd hand properties yourself. Each come with pros and cons, and neither is better, ultimately it comes down to what kind of investment is right for you and what you are looking to achieve. Read full article here
Some quick points to consider…
- Off-plan properties will come with 10-year build warranty
- Off-plan properties will likely be way more energy efficient than a 2nd hand property
- Off-plan comes with the risk of development not being fully funded to complete
- 2nd-hand property is more likely to be an active hands-on investment
- Off-plan property often comes below market value
- 2nd-hand properties will likely require more maintenance
- With off-plan investments you are only buying from images and floorplans
There is a lot more to consider than this when choosing between the 2, ultimately it may come down to what type of investor you are (Active or Passive) or maybe just what deal you can find. We run through this in full detail in our full article.
Your guide to Bridging loans as a property investor (Active)
If you’re going down a bridging loan route then you are either experienced or have someone holding your hand in the process as they can be a tricky thing to navigate, but also offer huge opportunities when financing a property. Read full article here.
A bridging loan is an alternative to a mortgage for investors. It allows you to quickly borrow 70% -80% of a property very quickly, effectively as a cash buyer, but unlike a mortgage it may only be a short period of 6 – 12 months, where you will then have to pay back the full amount.
If you are looking into bridging loans then educate yourself on how they work, in our full guide we run through all the pros and cons, along with minimising any financial risks and how to best manage your way through such a loan.
What is an FRI Lease
FRI lease stands for “Full Repairing and Insuring Lease”. Meaning a tenant is responsible for all repairs and insurance of a property they inhabit, not the landlord. Read full article here.
These can have several pros and cons and work well mostly for commercial tenants.
- Most responsibility with property is on the tenant
- Used for commercial tenants such as shops and restaurants
- Are an easy solution for landlords wanting to be as hands-off as possible
For a full run through of what an FRI lease is and if it is ideal for you as an investor go to our full guide on FRI leases.
Best tenants for your investment
The best tenants you can hope for are ones who pay on time and take care of your property. It will depend mostly on the type of property, for example it may be a student property, in which case there is more risk with them damaging your property. With long term rentals we typically look for working professionals. Read full article here
However, it is almost always a luck of the draw as some of our best tenants also come from social housing.
The best way to find good tenants is to have a premium luxury property in a good area, this is one of the reasons we sell luxury city centre apartments.
If you want more detail on what to look for, and what kind of tenant will suite your investment then read our full answer on this.
Different ways of financing a property investment
Every method of funding an investment can come with its pros and cons, know what is best in each situation and make sure you make the right decision for your goals. Read full article here
- Cash
- Borrowed Cash
- Bridging loan
- Bank Loan
- Mortgage
For a more in depth investigate all your financing options run through the pros and cons in our financing comparison document.
Why invest in Eco property
There are 2 main driving factors for investing in eco property, saving on rising energy bills and doing your part for the environment. As an investor and from a business perspective the money saving is probably the key factor. In addition, with more regulations and various government grants, it is more attractive and important than ever. Read full article here.
Eco investment overviews
- Government grants to upgrade your current property
- Growing number of people wanting to live as eco-friendly as possible
- Massive savings on energy bills
- Doing the right thing for the environment
- Keeping up with government regulations
We have run through all the options and reasons why you should invest in eco property or upgrade your current property in our full guide.
Holiday Buy-to-Let Property Investment
Buying a holiday property comes with a range of benefits, however it can also be a lot more work and higher management costs.
Some of the main points to consider
- Additional tax relief and deductions compared to residential investments
- Personal use of the property
- Higher rental yields per night
- Lower occupancy rate
- More work and management required
In our full guide we run through all the tax benefits, additional pros as well as exploring the downside of holiday and short term let investments.
HMO buy-to-let property guide (Active)
HMOs (House of Multiple Occupants) offer a fantastic opportunity to get a high rental value from a property. They work by renting each room out separately often on a price per room per week. This is a popular model for students. Read full article here.
Pros
- High yields
- Can easily create HMO from a house once you get planning permission
- Fantastic for student towns and cities
Cons
- Additional management
- Multiple tenants lead to disputes
- More void periods
- High tenant turnover
- Wear and tear
In our full guide we go over expected yields and financing options for these investments. In addition, we look at what locations are popular and everything else you will need to know if considering a HMO investment. We also offer HMOs for sale.
Choosing a location to invest
9 Best locations to invest in student property (Passive)
Ultimately the best place to invest is wherever you find great deal, as long as you have conducted all the necessary research on the locations demand and the property you are investing in, and know with some confident the returns you can achieve.
However, there are locations where student demand will likely remain high making your investment possibly safer.
- Manchester
- Liverpool
- Birmingham
- Sheffield
- Leeds
- Nottingham
- London
- Lancaster
- Edinburgh
We go through why each one of these locations should be considered for student property investments in our full article.
Best Locations to invest in UK Property
Ultimately the best place to invest is wherever you find great deal, as long as you have conducted all the necessary research on the locations demand and the property you are investing in, and know with some confident the returns you can achieve.
For Fabrik our favourite and in our opinion, the best places to invest are…
- Manchester
- Sheffield
- Blackpool
- Birmingham
- Liverpool
Read below to learn why these are such good locations to invest…
The answer to this question will also depend on several factors which will be personal to you.
Manchester Property Investment Guide
Manchester is one of the UKs major cities and often seen as the capital of the Northwest. It has the largest percentage of young workers in the UK making a great location for working professional tenants. Read full article here.
The scale of regeneration in the city centre and surrounding areas is unmatched. MediaCityUK lead the way with billions of pounds invested over the last 2 decades, completely transforming parts of Salford.
Manchester has many investment developments targeted at both students and working professionals as it has both a large population of tech companies and several major universities.
For our complete Manchester guide, along with investment opportunities, market statistics and future growth click below.
- Media City UK, home to the BBC
- Airport City, one of the largest regeneration schemes in the UK with Beijing Construction Engineering Group
- The 20-acre, £800m NOMA mixed use redevelopment scheme
- The £750m First Street development, offering a compelling blend of culture, retail and leisure
Liverpool Property Investment Guide
Liverpool is one of the key locations that many of our investors look to invest. With international fame on several fronts from the Beatles to Football, it is a well-known city. It is popular as it is a significant student location, along with having a strong tourist’s market. Read full article here
This makes it popular for PBSA (purpose-built student accommodation), HMOs (House of multiple occupants) and Short-term let/ serviced accommodation investment.
Further to this property prices are cheaper than it close neighbour of Manchester, another popular investment location.
For a full market and location run through of Liverpool read our full guide.
- Savills forecasts the North West as the UK’s best-performing region to 2024, with house price growth of 24.1%
- House prices in Liverpool grew by over 22% from 2014-2019 (Zoopla).
- In the three months to May 2019, Liverpool led the UK, with an average house price increase of 0.9%, according to the UK House Price Index from Zoopla/home track.
More recommended reads on Liverpool…
Birmingham Property Investment Guide
Birmingham is the UKs 2nd largest city after London. As such it is a key area to seriously invest in property. Read full article here
The location of Birmingham places it between the Northern powerhouse and London in the Southeast. With most major transport routes connecting the north and south going via Birmingham. This includes the HS2 line and M6. The planned HS2 line will make commuting feasible for the first time ever, a commute of around 40 minutes.
For our full market stats and walkthrough of Birmingham investments red our full guide.
More recommended reads on Birmingham…
Preston Property Investment Guide
Preston is not a well-known location for investors, however with this brings opportunity to be an early investor in an up-and-coming location. With a relatively new status as a city, loads of investment and being well located within the northwest between major cities all contribute to its booming property market. Read full article here.
- Preston has seen an impressive population rise in recent year. Between 2001 – 2017 the population saw a growth of 8.4%
- It serves one of the largest UK Universities which has around 33,000 students in addition to teaching and administration staff. This opens the market up to working professionals and student accommodations
- university is going through heavy investment with a £200, million plan for the Preston campus
- Manchester and Liverpool are easy top get to via road and rail, both being less than an hour away (about 27 miles)
To read our full guide on Preston with market stats go to our full guide.
London Property Investment Guide
The London property market is more about securing large funds rather than seeking high yields. Property is far more expensive than anywhere else in the UK. Read full article here
London is a popular market for wealthy individuals to park their money with the intention of just staying ahead of inflation with an additional benefit of yields at around 3%. It is typically seen as a safer investment but with this come less opportunity to grow your money.
To read our full in-depth walkthrough of London go to the full guide.
Blackpool Property Investment Guide
Blackpool is an overlooked location for investors; however, it is the location where Fabrik Property Group hold much of its own portfolio. Read full article here
Investors looking to invest in the earliest possible stage of a growing town and wanting a much lower entry level should seriously consider Blackpool. It has billions of pounds of regeneration currently planned and ongoing.
Sheffield Property Investment Guide
Sheffield is part of the major cluster of cities in the north of England and is another key location for investors. Property is cheaper than most other major cities and it is an area of major regeneration.
It boasts a large student population with 2 major Universities meaning it is a popular location for student investments such as HMOs and PBSAs.
Read our full guide on Sheffield for an in-depth analysis of Sheffield.
Useful investment Tip articles
9 ways to increase rental value (Active)
There are many ways to improve the rental value of your property investment, however the best answer is also the most painful “choose the right property in the right location”. Read full article here.
- Buy the best units in if in a development
- Buy a furniture Pack
- Place ads on multiple sites such as booking.com, Zoopla, Rightmove etc…
- Hold open days
- Buy properties that are in short supply
- Buying property near gyms, restaurants, and other Amenities
- Buy close to Town Centres and other Commercial areas
- Consider level of competition when decorating and refurbishment
- Pick a good management company
Read the full breakdown of all these opportunities to add value to your rental property.
How landlords can protect themselves in a recession
At the time of writing a recession is looming, but regardless of when you are reading this any economy will typically have a recession once or twice a decade, making recession proofing an essential for any portfolio. Read full article here.
- Become low geared on your property portfolio
- Build a residential portfolio
- Invest in Inflation hedges
- Bring expenses down
- Increase rent
- Never stop looking for deals
We look at all these option in more depth I the full article.
How to spot a property investment scam (Passive)
A scam could be a complete con or something that the seller had no intention of delivering or may be an opportunity which doesn’t deliver close to what was promised and had deliberately been over sold to an investor. Read full article here.
- Too good to be true
- Look up on Companies house
- Look up social media
- Read Reviews
- Look for news report
- Ask if you can speak to a previous client
- Speak to local experts to see if the property can deliver on the promises
Learn more about all these methods to help avoid scams in the property market in the full article.
How to deal with squatters in your property
There are 2 parts to this, prevention, and removal of squatters. You will want to do everything you can to prevent squatters in the first instance. So, implement our suggestions as soon as you can, and don’t wait until you must try and remove them, which may have a serious effect on your income stream. Read full article here.
Prevention…
- Timer switches
- Fake plants
- Remove post
- Keep driveway in use
- High quality locks
- Perforated screens or solid screens
Removal Steps…
- Contact The Police
- Give them a clear notice
- Issue an Interim Possession Order (IPO)
- Claim possession
The removal process is a little more complicate than just these steps. In the full article we talk you through it and where you will need to submit certain documents if needed. Along with more details on the prevention methods.
25 step due diligence process before investing in off plan property (Passive)
If you are looking at off-plan property, then it is likely you are a passive investor wanting a good return without being too involved in the investment, as you simply do not have time. Read full article here.
There are essentially 2 things you will want to cover before investing, 1. That it is a good investment, and 2. It is not a scam. Our steps below are what we ourselves do before offering investment to our clients.
- Track record of developer
- Check Companies House
- Look into directors
- Google Search
- Developer credit history
- Do Valuation Stacks Up
- Check price per square foot
- Is rent guarantee backed up
- Feasibility study on the area
- Any regeneration in area for growth
- Length of leasehold
- 10-year build warranty
- Check ground rents
- EWS1 for cladding
- Car Parking
- Check Service charge Price
- How are returns paid
- Make sure letting and management fees are fair
- Check Gross and Net yields
- See if development is funded
- Reliable construction firm
- Check solicitors on all sides
- Land ownership documents
- Make sure planning is approve
- Check build costs and what happens if something goes wrong
Many of these steps are technical details which involve checking various documents from various resources such as local council sites or Companies House. In the full article we go through each one of these checkpoints and how you can check them yourself.
Should you buy furniture for your investment property
Sometimes yes but also maybe it is not worth it. It all comes down to whether the additional rent you can charge will cover the cost of the furniture. You will need to do all your own calculations on this, and research all similar properties in the area to see if it is a good investment. Read full article here.
Ultimately treat the decision of furniture buying the same way you would the investment itself. Calculate the ROI with all other costs such as damage, lifespan, competition, extra rental value and possible decreased vacancy rates.
The main things to look at with furniture investments…
- More rent
- Cost
- Damages
- Balance cost to additional income
- Replacing furniture
- Competition
- Type of Property
We go through each of these points along with the pros and cons of furniture in your investment property to help you calculate a more informed decision based on your exact scenario.
Investment Strategy walk-throughs
How to invest in property with less than £50K
As experienced investors we value education, which is why we would recommend anyone with low funds of around £50,000 may be better off investing in courses and books, to fully understand the investment market. Read full article here.
We would also recommend that you should never invest all your money into 1 asset. So, if you were looking to invest £50,000 then ideally you would have closer to £100,000 in savings
If you only have £50,00 and are new to property…
- Spend up-to £10k in education
- Practice with a rent-to-rent strategy
- Be prepared to lose money
If we were to invest £50,000 as professional investor what we would do…
- Find a distressed or below market value property
- Appraise a lot of properties, maybe 100 or more
- Calculate all your expenses and costs whilst trying to leave a 30% margin for profit
- Refurbish the property
- Refinance the property and use the money to invest again
See also…
How to invest in property with less than £100K
How to invest in property with less than £150K - £250K
Investing with £50,000 or £250,000 for us would be the exact same process as the 5 steps stated above. In each article we go through the calculations as clear examples of what you should be looking for and all the steps you need to take. Read whichever article is relevant to your budget.
Refinancing vs Selling as a Property investor as an investor (Active)
If you have a property that you wish to pull capital from, to place into something else, then you will have 2 main options. Refinance or selling your property. Read full article here.
The main points to consider…
Refinance
- No tax on the debt gained
- You keep the property
- You owe money on the debt
- Not ideal for a non-professional property investor
- You will need a solid RICS valuation
Selling
- You have no debt to pay
- The additional cash can be spent on whatever you want
- Tax on profit
- Loss of income stream
In the full article we run through each one of these points in further details.
How to release equity and raise funds to build your portfolio (Active)
The best way to release equity to build a portfolio is to simply refinance. Refinancing allows you to keep your rental income whilst investing funds into more property. You could also sell property that has already seen a good profit to invest into other properties and assets. Read full article here.
Refinancing property is often part of an active portfolio building strategy, and ideally you will need to educate yourself before getting involved in this process….
- Get Educated
- Put the time in and ditch the passive model
There is a lot more to learn about releasing equity to build your portfolio, we fully recommend you read the full article on this in addition to all our articles in our strategy section to fully understand what is involved.
Rent to Rent Property Investment Guide (Active)
Rent to rent is a fantastic option for someone learning all the ins and outs of active property investment. Ideally it is a strategy that you only want to use if you are keen on becoming a full-time professional investor with little to no capital. Read full article here.
Although people do make good profits if this strategy alone, if you learn all the core skills then eventually you will be better off applying those skills to property you own yourself.
Steps to take on a rent-to-rent strategy…
- Research the market
- Find landlords / estate agents open to rent to rent
- Make offers
- Final due diligence
There is a lot more that we go through in this strategy, which you can read about in our full step by step rent-to-rent guide.
Make your buy-to-let property investment appeal to as many renters as possible
Making your property stand out will do 2 things for your investment… firstly you will be able put a higher value on your rent, and secondly it can help reduce vacancy periods, as renters may choose your property over competing properties in the area. Read full article here.
To begin with the best thing you can do is choose the right property to begin with. This will involve lots of research and due diligence on your part.
If you currently have a property, then read some suggestion below…
- Great photography
- Get Floorplans
- Furniture
- List all the benefits and selling point
- Convert spare rooms into bedrooms
- Advertise on as many portals as possible
- Keep property in good condition
- Advertise in the right places for your property
- Parking
We run through each one of these suggestions in our full article. This will help you determine which of these options is a good idea for your own property.
How to increase the value of a property (Active)
If you are buying a property to increase the value and sell on, or maybe you already have a property you are looking to sell but wish to increase its value as much as possible. See our suggestions below, but also consider what extra value it could bring you. Read full article here.
Some of our suggestions…
- Open plan living
- Bi-folding Garden doors
- Improve garden space
- Curve appeal
- Extension
- Add a drive
- Planning permission for a drop curve
- Extension planning permission
- EV point
- Energy efficiency
The full article we explain how each point above can increase the property value. You will need to calculate the value any of these can bring to your property and treat any major improvements as an investment by calculating your ROI.
Passive Property Investment Strategy Guide (Passive)
If you are considering a passive investment strategy, then it is best you understand how this can work compared to an active refurb & refinance investment strategy. Read full article here.
Firstly, this strategy is ideal for a busy professional who does not want to go into full time property investment, but still want to build a property portfolio. As you do not have as much time to put in, it will naturally be a slower way to build a portfolio.
- Passive investment steps…
- Research areas
- Product Quality
- Research Developer
- Buy Early
- Negotiate
- Buy 2
In our full guide we explore these steps along with your options after you have invested.
Should you invest in property during a recession
The short answer is… you should always be looking to invest, be it property or any other investment. Warren Buffet has been quoted saying “I am always looking for the best investment at the time”. regardless of economic times. Read full article here.
Key points to remember when investing in a recession…
- Look at all investments not just property
- Know your level of risk
- Always be on the look out for the best investment, whether it is property or something else
- Don’t wait for the bottom of the market, as it will never come.
- Seriously consider investing in cash during recession to avoid rising interest rates
We run through this in far more detail in our full article.
Investing in UK property as a foreigner
For most non-UK residents investing in the UK property market the process and rules are the same, with international tax treaties and no major restrictions in buying UK property from abroad. This makes it easy for almost anyone to invest in the UK. There are only a few exceptions such as North Korea and Russia where political tensions may prove to difficult to overcome. Read full article here.
In our full article we will cover everything you need to know as a foreign investor…
- Taxes for foreign investors
- Finance options
- Currency Exchange fees
- Setting up a limited company
- What Documents you need to invest
- Investing as a foreign individual or through a company
- Foreign Investor Visas
More recommended reads…
Investing in UK property from Hong Kong
Useful Investment Tools & Resources
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