Could You Be a Property Investor?
Over the last decade or so, investing in property has ballooned in popularity. It is estimated that there are now up to a million property investors in the UK and a recent survey from the Association of Residential Lettings Agents (ARLA) found that landlords now own an average of seven properties.
Property investors come in all shapes and sizes. I have met people who have stepped out of the rat race from other careers to concentrate full time on their buy to let investment portfolio as well as people who love renovating property and so have bought distressed or old housing stock and have completely renovated them prior to letting. There are also many investors out there who have day to day jobs but who are simply looking for more effective ways of ensuring their savings and investments work hard for them.
You don’t have to be a multi millionaire to be a successful property investor. Whatever your personal situation, investing in property has become a viable and accessible way to achieve increased income and long term capital growth. I don’t come from a privileged background and I was able to start my property portfolio after the luck of a small lottery win. I’m fortunate that my property investments now mean I can offer my children better opportunities than I was afforded by my parents and this is one of the main reasons many people are looking to property as an investment.
In my experience, there are several main traits that I and other successful property investors share. Firstly, we are well informed and have a great knowledge of both general property issues and, more importantly, trends within our own area. We have a great idea of property values in our towns and city, a good knowledge of the local geography and of the local rental market. We research prices, demographics and agents in our chosen areas and can therefore invest wisely based on our expansive local knowledge.
Secondly, I’ve found that a good property investor has an expectation that success is likely only to occur in the medium to long term. They understand that a buy to let investment is likely to have periods where there are no tenants, that the value of the investment will fluctuate as house prices rise and fall and that their finance costs are also likely to vary.
Thirdly, a good property investor has a network of relationships with people who know how to invest in property. They have a good quality broker to arrange their finance, a good solicitor and a competent lettings agent. They know all their local agents and auctioneers and so not only benefit from being the first to know about new property coming to the market but also have the professional expertise to call on to make their investment a success.
Investing in property is rarely straightforward. House prices rise and fall, interest costs can fluctuate on a monthly basis and the quality of tenants can vary markedly. However, if you know your local area, have a well-devised strategy for long term success and are prepared to assemble a local team of property professionals to support you, you could join me and many thousands of Brits successfully investing in property in the UK.
