If you are considering getting started in property investment or expanding your property portfolio, you probably have lots of questions about the process and the latest tax rules and other legal requirements that property investors must comply with in the UK. The good news is that I’m going to answer all of the most common questions for you!
I’m Adam, the CEO of Advantage Investment, with over 10 years of experience within the property investment industry. I’ve worked on investment projects of all sizes, helping people to go from acquiring their first property, to becoming global investors with multiple properties. All the way up to acquiring multi – million-pound portfolios for my clients.
Your property investment FAQs answered by Adam
How much capital is required to start investing in property?
This really varies depending on the different investment options. Some of our clients are able to get started with a buy-to-let with a small deposit and a buy-to-let mortgage. Other investments offer different financial requirements. You certainly do not have to have millions of pounds in the bank if you want to get started in property investment. Quite often you can start with as little as £20,000.
What is buy-to-let?
To keep it simple this is the most common way to earn money as a property investor. You buy a property and rent it out for an income. As a landlord, you will generally make a profitable long-term yield from any increase in the property’s value, in addition to the rental income. Selecting the right buy to let however is the difficult part, a task even seasoned investors tend to struggle with.
Is the UK still a good investment market for overseas buyers?
Despite some recent increases to stamp duty for overseas buyers, the UK market is still very attractive to overseas buyers. The combination of low house prices, a high demand for rental properties and the current relatively low value of GBP ensures that the UK is one of the best places to invest in property. It is also a heavily regulated industry which offers long term security for your asset. Demand in certain areas in the UK is set to skyrocket over the coming years. I would suggest there has never been a better time to invest in the UK market.
Can I start to make income from an investment straight away?
Every type of investment is different, for example, an off-site plan might take longer to start generating income while in the development phase but may require a lower deposit. However, there are many other types of investment opportunities where you can start to generate profit immediately, if that is your top priority. Speaking to a specialist will ensure that you find the right type of investment, depending on your investment goals. I always say what is perfect for one investor may not necessarily work for another. Everyone has different needs and lives different lifestyles. This is why it is so important to talk to someone about what options are out there.
Do investments come with guaranteed returns exist?
Yes, some investments offer guaranteed returns but not all of them do. There are different sets of initiatives involved in each investment, so you should speak to an investment specialist to discuss the investments in more detail. This will allow you to understand what initiatives are in place but also the risk factor involved in that particular investment.
Are UK holiday accommodations a good investment strategy?
In short yes. The current UK staycation boom has resulted in huge demand for holiday property rentals such as luxury lodges. UK tourism experts are predicting that the demand is expected to continue for the foreseeable future, so now is an opportune time to invest in UK holiday accommodation. However that being said not every holiday investment is a good opportunity, as with every investment you need to do your due diligence and speak with an investment specialist to make sure you are getting the best possible investment.
At the moment a lot of the market leaders in this industry are starting to put together attractive investment packages, which are in partnership with huge financial institutions which offer a secure lucrative investment which is perfect for the current economy.
What stamp duty is applicable in the UK for property investors?
The UK government recently made some changes to stamp duty requirements and how the amount is calculated. We have created a comprehensive guide that breaks down the stamp duty charges depending on your specific situation as a property investor. Download the guide here.
I’m happy to answer any other questions that you might have, so drop me an email with the questions that you would like me to answer: contact@advantageinvestment.co.uk or give me call on 0151 433 9300.
