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Welsh Bridge, Frankwell
Shrewsbury SY3 8LG
9 Darwin Court, Oxon Business Park, Shrewsbury, SY3 5AL
The Estates Office,
20 Salop Road,
Oswestry SY11 2NU
21 Leg Street, Oswestry SY11 2NN
1 Berriew Street,
Welshpool SY21 7SQ
1 Great Oak Street
Llanidloes SY18 6EQ
25th November 2021
UK interest rates on bank accounts and other accounts such as savings, is very low so our money is not growing as quick as it used to or as quick as we would want it to. It’s a shame we can’t plant it to make those much desired money trees! There are many ways to invest your money, but some of these can be complicated to understand, set up and manage. Property is an easy and understandable way to invest and can offer many benefits:
There are a few factors to consider when looking at investing in property.
Where to buy?
Choosing the location of your investment can be tricky, do you stay within your local area or look for a town or city where property prices are lower? If you are going to manage the property yourself, think about the contacts you have in that area for repairs and maintenance. If you are going to use a managing agent, make friends with some local agents to see which areas are good to invest in and ask for assistance with finding the right investment property for you. Cheap isn’t always good either, think about costs, will you be able to sell it and is there are reason why it is low in price.
There are many ways to purchase your new investment property so speaking to a financial advisor or mortgage broker is the first step.
There are a number of buy-to-let products out there, so your mortgage broker will be able to tailor make a package to suit you, If you have the option to purchase in cash make sure you leave a little behind to freshen your property ready for it to be let out. Property that is handed to a new tenant in excellent order are more likely to be maintained well and looked after.
When you are looking for an investment, make sure that it is going to generate a good income for you. The yield is an important figure that you want to work out for every property you look at. This can be calculated using the following:
(Monthly rental income x 12) ÷ Property value
Look for a yield between 5% and 8% and if you can get more, brilliant! HMOs tend to have a much higher yield but there are a number of factors to consider when purchasing or setting up a HMO, this will be a future blog post!
Before you buy
Before you embark on your property journey there are a few more things to consider:
If you would like more advice on investing in property our lettings team will be happy to help. Alternatively click on the Lettings tab or drop us an email email@example.com