Finance

How to Invest in Property in 2020: Tips & Advice

For those wanting to build and sustain a long-standing financial portfolio, helping you on your way to ‘financial freedom’ and perhaps even forming a substantial part of your eventual retirement fund, property investment is a great option. Not only is the asset class more hard-wearing in the face of market uncertainty than the likes of more volatile options such as stocks/shares, but with buy to let investment, in particular, you can receive a regular secondary income stream through rental payments from tenants living in your property.

Interested to find out more about property investment? For those looking to get started, here are some quick pieces of advice that you may not have considered, and may find interesting. Read on to find out more, and get inspired to begin your property journey!

Table of Contents

Getting started

There are a couple of things that you need to consider before investing in property. Aside from assessing whether you have enough capital to invest, you should also think about whether you can afford to have your capital tied up in different investment pots for long periods of time.

Tip – To help decide whether you think this type of investment strategy is right for you, try and outline your financial goals for the short and long term, and also consider the level of commitment that you can allocate. If you’re someone that doesn’t have a lot of time on their hands to manage the day to day ongoings of property investment, you might opt for a hands-off strategy, where a management company will handle all tenant requests and the day to day minutia, leaving you to collect the rental payments and build on a hopefully lucrative purchase for the long run.

Choosing the best area

The area that you’re choosing to invest in for your prospective property venture is absolutely crucial, as this is as important to the property’s value and projected price growth as the quality of the build itself, and the size of the property. You want to make sure that you’re investing in an area that has plentiful amounts of regeneration on the go, with plans to expand in the future, and also in an area that is high in demand with people wanting to move and live there (which, in turn, means that your property will be more popular).

Tip – There are a ton of guides, videos, and podcasts out there on the state of the UK property market, and so you can learn as you please depending on the type of media that suits you best. If you prefer to listen on the go, for example, RWinvest offers a range of downloadable podcast episodes on the benefits of the likes of Liverpool, Manchester, and London, three of the most talked-about cities when it comes to investing.

Doing your due diligence

Of course, while property investment is typically much more secure of a strategy than some other investments out there, there are certainly risks involved, and you need to make sure that you are doing your due diligence when setting up and going ahead with a given investment project. Make sure that the investment company you go with is reputable, the area has proven to be successful, and that the developer has completed and fully financed projects in the past.

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