Investing in property is often considered a shrewd financial move, as many people make a good amount of money from this form of investment. But there are several factors to take into consideration, to be sure you make the best decision.
Type of property
Elements to consider are location and building type, just like your own home. A new build off-plan, refurbished in turnkey condition, or a bargain that needs work and can have value added?
However, there are extra aspects to think about. What buyers/tenants do you want to attract? Families want to be near good schools in a large, comfortable home. Young professionals need convenient transport links and a cost-effective flat. Students require low rents and easy access to campus, with multiple bedrooms.
Whether you’re investing to renovate and sell or rent out, stamp duty is higher for a property you don’t live in. When you sell your investment property there is also Capital Gains Tax, with allowances and different percentages based on taxpayer rate to be aware of.
Not buying outright? Think about the type of mortgage you apply for. If you plan to rent it out, Buy to Let mortgages come with conditions and risks, and involve requirements like a home you already own, a good level of credit history and an income at a certain threshold. There’s the deposit and monthly repayments to plan for (with interest rates typically higher). Then there’s the income tax you’ll be liable for in relation to the rent you charge. Plus there’s letting agent fees, landlord insurance and any repairs or maintenance that needs to be carried out.
Who you’ll need to work with
When investing in real estate, you’ll be dealing with various people and firms. First off, there’s the estate agent or commercial company you’ll buy from. Transactions like this also involve solicitors, surveyors, mortgage brokers/companies and tax/financial/legal advisors. And if you’re renting it out, there’s the letting agent and tenants, plus accountants to help file your tax returns.
When it comes to renovating to get the building into saleable or let-able condition, you’ll have architects, structural designers, builders, tradesmen, gas safe engineers, etc. to work with.
Here at Fittra Construction we can liaise with these experts on your behalf, freeing up your time and taking care of the finer details in a project management role. Our service takes away the hassle and admin, and lets you focus on the financial returns. Get in touch with us today to talk about your plans.