Investing in Your First Property as a Landlord

Although certain sectors of the property market are expected to slightly weaker in 2017, investing in property is still one of the best ways to make money in the UK. Residential property is particularly strong as many people are now unable or unwilling to invest while the job market is so unstable.

Below are some of the most important things to consider when investing in your first property.

Location

Location is extremely important when investing in your first property. Many people think of London as being on the best places to invest in property due to how densely populated it is, however that isn’t necessarily the case. A recent article by Money Week explains how Birmingham currently offers a better return for property investers than London.

Type of property

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The type of property you want to invest in is another thing you should think about carefully. Certain sectors are predicted to perform better in the 2017 than others. For example, industrial property is predicted to perform very well, as large retail chains require more stock space. You should do your research and think carefully before committing and never be afraid to ask for advice from people who are currently operating in the property market.

Current state

When considering a property, you should always think about how much work and money it will take in order for you to be able to let it out. If a property needs a lot of renovation then you not only have to think about the time and expense required but also that you’ll need to have it insured while it’s unoccupied. Residential buildings that are unoccupied are at considerably greater risk so you should certainly take this into account.

Insurance

In addition to the initial expense of a property, you also need to think about how much it will cost to insure. Properties in low crime areas typically cost less to insure so they’re usually a wise investment. A good landlord insurance policy will cover you for structural damage, liability claims and contents. The value and security of the property will affect the price you pay for landlord insurance, as well as where the property is located.