Are you an investor from the UK or overseas seeking a hassle-free way to get into property investment?
Do you seek a relatively hands-free approach to real estate investment but with promising returns in the long term?
Look no further.
Baron & Cabot, UK’s leading property investment experts, provide a simple step-by-step approach to building your real estate portfolio. Drawing from intensive market research, this comprehensive guide outlines how to get into property without headaches.
That said, here are the seven simple steps to get started with property investment in the UK:
- Decide on your investment goals.
- Find experienced property investment experts.
- Review their track record and credentials.
- Choose a property type that matches your risk profile.
- Review due diligence and legal documents.
- Arrange finance and get a mortgage.
- Complete the purchase and become a landlord.
How to Get Into Property Investment in 7 Steps: 2024 Guide
Step #1: Decide on your investment goals.
Determining your investment goals is the first and most crucial step when getting into property investment. While everyone’s financial objectives may vary, it’s essential to prioritise two key aspects: capital appreciation and long-term yield.
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Capital Appreciation for a Fruitful Investment
Investing in property market offers the potential for significant capital appreciation over time. As the property market fluctuates, UK property values have historically shown an upward trajectory—up to a 464% increase in the last 40 years—allowing investors to grow their initial investment. You should strive to invest in properties in desirable locations and monitor market trends — this way, you can capitalise on the appreciation potential.
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Long-Term Yield From Rental Income
In addition to capital appreciation, generating a steady long-term yield from your rental property investment is equally important. Rental income can provide a consistent cash flow stream, contributing to the overall return on investment. You’ll need to invest in properties in high-demand rental markets and maintain desirable rental units to secure a reliable income stream that helps offset expenses and contributes to your financial goals.
For a balanced portfolio with promised returns, we recommend going for property investments that offer both capital appreciation and long-term yield. While capital appreciation can be more unpredictable and subject to market fluctuations, long-term yield through rental income offers stability and cash flow throughout your investment journey. Striking a balance between these goals can give you the best chance for sustained financial growth and security.
Moreover, it’s worth noting that property investments tend to be long-term commitments, often requiring patience and a strategic approach. You benefit from both short-term and long-term gains by aligning your investment goals with the potential for capital appreciation and long-term yield.
At Baron & Cabot, our real estate investment experts understand the significance of investing in properties that offer capital appreciation and long-term yield. We work closely with you to assess your financial situation, risk tolerance, and investment objectives. Through our market research and access to a wide range of property opportunities, we can guide you toward properties with solid fundamentals and the potential to achieve your investment goals.
Step #2: Find experienced property investment experts.
Partnering with an experienced investment expert is critical to your journey on how to get into property investment in the UK. At Baron & Cabot, our team has worked with property investments for years, simplifying the process for investors like yourself.
Here are what you stand to benefit from when you team up with property investment specialists like Baron & Cabot:
1. The experts get to handle the legwork.
Rather than researching properties yourself, let our experts do the legwork. We’ve built market-leading data on up-and-coming property areas in the UK, prices, and investment opportunities to help you confidently choose the most suitable investment. In addition to a 122-point report, all our properties undergo rigorous due diligence, one of the industry’s most robust processes.
2. Access to prime opportunities.
Working with reputable investment experts provides access to prime opportunities not available publicly. We have strong relationships with developers, agents, and vendors across the UK, giving clients early access to properties with the highest potential returns.
3. Ongoing management and support.
A good investment company will help you invest and provide ongoing property management and client support. Our sister company, Redstone, fully manages all properties, handling any issues that arise and ensuring maximum returns — all for a fraction (10%) of the rent. Our dedicated contacts provide support whenever needed, answering questions and keeping you updated on your investments.
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In summary, partnering with Baron & Cabot provides a hassle-free approach to gaining exposure to the lucrative property market. Our experts handle the details so you can confidently invest and watch your returns grow. Contact us to know more. Have a look at the Timber Yard property in Birmingham for an example of the developments we can provide.
Step #3: Review their track record and credentials.
Your next step in getting into real estate in the UK is knowing your investment partner, especially when buying property in the UK as a foreigner. To invest in property confidently, finding an established firm with a proven track record of success is essential, as with any industry; experience and expertise matter. Look for experts that have facilitated property investments for many years and have a strong reputation.
Here are some things to consider when choosing a property investment expert:
Longevity and Reputation
Seek out firms that have been in business for years. They’ll have weathered market ups and downs, gained valuable experience, and built a reputation based on the results and service provided to clients over the years. Check independent reviews from trusted sources like Trustpilot to determine their reputation and client satisfaction.
Credentials and Qualifications
The ideal firm will have key staff with proper credentials, licences, and designations demonstrating their qualifications. When navigating how to get into real estate in the UK, look for firms with professionals holding designations such as MRICS (Member of the Royal Institution of Chartered Surveyors) or diplomas in areas like property investment. Their knowledge and expertise will guide you to the best investment opportunities and maximise your returns.
Client References
Don’t hesitate to ask firms for references from current or past clients. Speaking with other investors who’ve worked with the firm can provide valuable insight into their experience.
Were the firm’s investment recommendations sound?
Did the actual results meet expectations?
Were clients satisfied with the level of service and support provided?
For well-rounded answers to the queries, you’ll want to look out for references from long-term clients.
Range of Services
Look for a firm offering a full range of services to facilitate your property investment from start to finish. This includes investment property search and acquisition services, financing guidance, property management, and exit strategy support when you’re ready to sell. A comprehensive range of in-house services will simplify the investment process and provide continuity of service.
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By thoroughly reviewing a firm’s credentials, experience, services, and reputation, you can determine if they have the expertise and track record to guide you to rewarding property investments and give you the confidence that your interests are in experienced hands. The ideal partner firm will take care of the details, allowing you to reap the benefits of your investment with minimal hassle.
Step #4: Choose a property type that matches your risk profile.
Learning how to become a property investor involves understanding different property types. Choosing an asset class that matches your risk tolerance and investment goals is vital. At Baron & Cabot, our extensive experience in the UK property market means we can guide you to the right property type for your needs.
Residential buy-to-lets are one of the best real estate assets you can put money into, either as ready residential property or off-plan residential property investment. As a tangible asset, residential property options let you invest in an income-generating property with the potential for capital growth over time. At Baron & Cabot, we source residential buy-to-let properties in areas with strong demand and a supply shortage to maximise your returns — stable income and steady appreciation.
Step #5: Review due diligence and legal documents.
The next step in navigating how to start investment properties is to examine the due diligence and legal documentation. At Baron & Cabot, our expert team has thoroughly assessed each property to ensure it meets our strict criteria.
We evaluate factors such as the following:
- Location: Proximity to transport links, local amenities, schools, and employment hubs. We look at both current and future infrastructure developments.
- Planning Permissions: We determine if there are any restrictions on the property usage or if there’s potential to add value through redevelopment.
- Ownership and Title: We conduct searches to confirm no property boundaries or ownership disputes. The title must be free from any onerous restrictions or covenants.
Once our research is complete, we compile a comprehensive 122-point due diligence report summarising our findings. You can then review this documentation and be confident in the investment decision when buying a property in the UK. Our legal team will also handle the conveyancing process to ensure a smooth transaction. Contact us today to explore viable investment opportunities and take the first step toward financial freedom.
Step #6: Arrange finance and get a mortgage.
If you lack the means to finance your property investment, how to start securing a mortgage should be the next thing on your mind. With Baron & Cabot, arranging finance and obtaining a mortgage is straightforward. Our team of property experts handles the legwork so you can start earning rental income with minimal hassle.
Once you’ve selected a property and paid the reservation fee of £5K, we secure financing on your behalf through our network of mortgage lenders and brokers. We don’t require buyers to source their mortgages or handle negotiations. Our mortgage partners offer competitive rates and terms to suit each investor’s needs.
The mortgage application process begins as soon as the reservation fee is paid. To expedite approval, provide the necessary documentation, including pay stubs, tax returns, bank statements, and photo IDs.
With pre-approval, the mortgage lender will issue an “Agreement in Principle” (also known as a “Decision in Principle” or “Mortgage Promise”) outlining the maximum amount they will lend based on your financial circumstances. This allows us to proceed confidently in purchasing your selected property.
A 20% deposit, minus the reservation fee of only £5K, is required to secure any property; the mortgage will cover the outstanding 80% balance, which is paid upon completion. Most investors opt for interest-only mortgages with fixed rates from 3 to 5 years. At the end of the term, you can remortgage to another lender or switch to a repayment mortgage. Our team will handle remortgaging to find you the best new deal.
For property investment, interest-only mortgages offer more flexibility and tax efficiency. The lower payments allow you to generate higher rental yields, while the interest portion can be offset against rental income for tax purposes. Since the balance is yet to be paid, the property value is effectively leveraged, enabling more significant potential for capital gains.
When you opt for Baron & Cabot’s hassle-free property investment service, arranging finance and obtaining a mortgage needn’t be complicated or time-consuming. Our experienced team handles the entire process, allowing you to become a property investor with confidence.
Step #7: Complete the purchase and become a landlord.
The last step on how to get into the property market is becoming a landlord. Once you’ve selected a suitable investment property and understood the terms, it’s time to complete the purchase. At this stage, we handle all the legal paperwork and finalise the contracts to make the process hassle-free for you.
The steps usually involve the following:
1. Appointing a solicitor.
We’ll appoint a reputable conveyancing solicitor to handle the legal aspects of your purchase and guide you through the contracts. They’ll conduct searches to ensure no undisclosed issues with the property and handle the exchange of contracts between the buyer and seller.
2. Exchanging contracts.
Exchanging contracts is the point where you legally commit to the purchase. Once contracts have been exchanged, you’re required to complete the transaction by the given completion date. We review and approve the contracts on your behalf before the exchange, giving you peace of mind.
3. Completing the purchase.
Upon completion, funds will be transferred, and you’ll officially take possession of your new investment property. We’ll support you and celebrate this milestone in building your property portfolio.
4. Becoming a landlord.
If you purchase the property as a buy-to-let investment, the final step is to become a landlord. We partner with reputable property management companies, like Redstone, who can fully manage the property on your behalf for just 10% of the monthly rent. They’ll handle tenant sourcing, rent collection, maintenance, and any other property management tasks, allowing you to reap the rewards of your investment with minimal hassle.
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With the guidance and support of Baron & Cabot behind you, purchasing an investment property needn’t be confusing or stressful. We’re with you every step, from finding your ideal investment to becoming a landlord, ensuring a straightforward process and many prosperous years as a property investor. Reach out to us today for more info.
Baron & Cabot’s Ongoing Support and Portfolio Management
At Baron & Cabot, we understand that getting into property investment successfully goes beyond the initial acquisition. Hence, we provide ongoing support and portfolio management services to ensure your investments thrive. Our dedicated team takes care of the day-to-day management tasks, allowing you to enjoy the benefits of your investment without any headaches.
Here’s how our comprehensive support can help you maintain and optimise your property portfolio:
1. Regular Performance Reviews
We conduct regular performance reviews of your properties to assess their financial performance and identify areas for improvement. Our team analyses vital metrics, such as occupancy rates, rental yields, and expenses, providing you with detailed reports and recommendations.
2. Market Analysis and Research
We stay updated on the latest market trends, rental market conditions, and investment opportunities. Our team continuously monitors the property market to identify emerging trends and make informed decisions about your portfolio.
3. Risk Management
We help mitigate risks associated with property investment. The Baron & Cabot team ensures you have appropriate insurance coverage, comply with legal and regulatory requirements, and effectively manage potential risks.
4. Portfolio Optimization
With our extensive knowledge and expertise, we can assist you in optimising your property portfolio. We analyse the performance of each property, assess market conditions, and provide recommendations on potential adjustments or diversification strategies.
5. Financing Guidance
Our team can advise on financing arrangements if you decide to expand your portfolio or explore refinancing options. We work closely with reputable mortgage brokers and lenders to help you secure competitive financing solutions that align with your investment goals.
6. Access to Exclusive Opportunities
As a valued client of Baron & Cabot, you gain access to exclusive property investment opportunities. We leverage our extensive network and relationships with developers, agents, and vendors to provide you with prime opportunities that may not be available publicly.
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By entrusting your property portfolio to Baron & Cabot, you can benefit from our ongoing support and portfolio management services. Our team of experts handles the day-to-day tasks, monitors market conditions, and ensures that your investments continue to thrive. With our comprehensive support, you can enjoy a hassle-free approach to property investment while maximising your returns.
FAQ: How to Get Into Property Investment
What is the best way to start in property?
To summarise, the best way to start in property involves the following steps:
- Educate yourself about the market
- Set clear investment goals
- Build a financial plan
- Research the market
- Seek professional guidance
- Select the right property
- Conduct due diligence
- Secure financing
By following these steps, you can establish a solid foundation for successful property investment and work towards achieving your financial objectives.
How to get money to invest in property?
There are several ways to obtain money to invest in property, including savings, mortgage loans, equity release, and private lenders.
- Savings: Use your savings or accumulated funds to finance your property investment. This approach allows you to invest without additional debt or interest payments.
- Mortgage Loans: Secure a mortgage loan from a financial institution or lender. The loan amount is typically based on your creditworthiness, income, and the property’s value. The property itself serves as collateral for the loan.
- Equity Release: If you already own a property with substantial equity, you can release some of that equity through options like remortgage or home equity loans. This released capital can be repurposed as investment funds to aid you in getting into fresh property investment.
- Private Lenders: Explore options for borrowing money from private lenders specialising in property investment. Private lenders may offer more flexible terms and faster approval processes than traditional financial institutions.
Overall, it’s essential to carefully consider your financial situation, risk tolerance, and the terms and conditions of any financing options before proceeding.
Is getting into the property worth it?
Yes, getting into property investment is worth it.The main reasons making property a lucrative investment include: the potential for appreciation, rental income generation, portfolio diversification, hedge against inflation, tangibility, tax benefits, and long-term financial stability.
- Potential for Appreciation: Property has the potential to increase in value over time, allowing you to build wealth through capital gains. Historically, property values have shown an upward trend and are expected to keep the momentum.
- Rental Income: Property can provide a steady rental income stream, especially in high-demand areas. Rental income can help cover mortgage payments and expenses and generate cash flow.
- Diversification: Real estate investment offers diversification within your investment portfolio, reducing the reliance on other asset classes. Real estate has the potential to move in a manner different from bonds or stocks, adding stability to your overall investment strategy.
- Inflation Hedge: Rental income and property values tend to increase as prices rise, providing a potential safeguard against the eroding value of money over time.
- Tangible Asset: Unlike stocks or bonds, property is a tangible asset that you can see, touch, and have control over. This physical nature can provide a sense of security and pride of ownership.
- Tax Benefits: Property investment often comes with various tax benefits, such as deductions for mortgage interest, property taxes, and depreciation. The tax professionals at Baron & Cabot can help you understand the specific tax advantages available to you.
- Long-Term Financial Stability: Property investment can provide long-term financial stability, especially when approached with a strategic plan. Carefully selected properties in good locations have the potential to generate consistent income and appreciate value over the years.
Conclusion
The potential rewards of property investment are substantial and long-lasting. By following the steps outlined in this guide, you can confidently navigate the process of how to get into property property investing with no hassle. And with Baron & Cabot guiding you through this journey, investing in the lucrative UK real estate market is easier than ever.
By relying on our expertise and experience, you can feel confident making one of your life’s most important financial decisions. Contact us today to discuss your property investing goals and get started on this exciting new chapter.
Disclaimer: Any information provided by Baron & Cabot does not constitute financial advice and is for educational purposes only.
