UK property Market Investment For landlords or new landlords (Part One)

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  • Author Tim Woz
  • Published August 18, 2007
  • Word count 705

The first and best piece of advice anyone will give you, when embarking on any form of new venture and not just the property market is always: never invest all your capital. You should always keep something in reserve for unforeseen circumstances. Landlords especially need reserves for bits you don’t think of like repairs, lease agreements, landlord insurance.

The never ending property boom has made many millionaires over the last quarter century, some of them coming from the most unlikely sections of society during that era, property prices have risen incredibly and increases in value seen to be continuing unabated. Statistics show that the average price of a house in the UK has increased from £23 000 to £158 000. That means more than 600%. This creates a great platform for investment in becoming a landlord. Property prices may fluctuate but as land gets more scarce buildings become more desirable and more expensive supply of housing goes down demand for houses stays up price rises. There is always a need for rented accommodation in the right places.

At one time people felt that by investing in their own home, they would have done enough to take care of themselves in their old age. However on of the downsides of the property boom that it is equally difficult to downgrade as it is to buy. That is why more and more people are investing their capital in the best investment that there has been around for a long time- property investment.

None of other the traditional means of long term investment will offer you anything like the same returns on your investment. Not pension schemes, not money in the bank and certainly not stocks and shares.

If one thing that this boom has shown is that investing and profiting from property dealing and investment is no longer the happy hunting ground for the hyper wealthy. The man in the street has proven that there is room for them too.

The simple rule that the property dealer had to always remember is in order to become a success in this market a “modus operandi” has to be established, and there are steps to go the process of buying and selling a property that should always be followed if maximum profits are to be realized.

There are cases of “beginners luck” in property dealing, as in everything else in life. However the consistently successful property dealers are the ones who know the ropes, don’t make major mistakes and constantly re-invest in their property portfolio.

UK property prices are at an all time high. In relation to average earnings, prices range per area from times five to times thirteen. The impact of rising interest rates and utility bills means that people investing in the property market need to have their finger on the pulse. There are those who say that the crunch time is her for the UK housing market. Landlord UK will show how to survive and increase your income in a difficult market.

The UK property market is not a rose garden.

Before stepping into it any would-be investor should know the market that they are about to tie up their capitol in from every angle.

They should be aware of the areas where there are demands for property, the types of property where there is a demand, and how to identify the ideal client.

Most important how to identify a bargain buy, and cash in on it before some one else does. The property market is very dynamic, and those who hesitate get lost.

Before investing in the UK property you need to realize that this is not a short investment. It may take a few years before your property development business will be in a strong enough position to be able to draw capitol from it. Any capital invested in your business should be money that you do not need to support your life style, at least in the short term. To become a property investor you should be prepared to make sacrifices.

Reduce your living standards

Be prepared to decide that any profits that your property development business earns should be reinvested in the business. Your business will become strong and its cash flow will become positive.

www.landlord.co.uk is the foremost website for property investment in the UK and overseas for landlords and tenants providing upto date information on news, mortgages, landlord forums and articles.

Including the interation to let your property or manage your property online.

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Article comments

Arthur Savage
Arthur Savage · 16 years ago
I fully agree with everything you have said. I especially agree that you need to keep some reserves for things like landlord insurance. Very important in this day and age!

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