First Time Buyers/Investors
Updated: Jul 21, 2019
As the saying goes learn how to walk before you try to run, when you are investing into a property for the first time its better to buy small value purchases rather than investing into more expensive and riskier projects. If it is your first time entering the property ladder without any professional guidance then it’s better to start with properties less than £200,000 in your chosen location.
There are many factors you need to think about when investing but the key points are such as location, demand and growth. Additionally, you need to consider if it is house or an apartment you wish to invest into as both types of properties have key benefits. Lastly will it be interest repayment only (where you only pay the interest of the mortgage and gain value off the appreciation of the house) or mortgage repayment (where you are paying off the mortgage and interest at the same time).
When it comes to rental incomes from your property there are two types of income, short-term income and long-term income. Short-term income is contributed via short-term rentals such as business travellers, holidaymakers or people looking for weekend getaways and long-term income is associated with tenants who would usually sign a contract to rent the property for the average duration of 12 months. The variation in the type of income you get depends completely on the type of investment you have done. For example, our Liverpool and Manchester projects would be attractive for long term tenants and our Orlando and Miami projects would be attractive for holidaymakers nonetheless both types of incomes are lucrative as short-term rentals provide higher rates and long-term rentals provide moderate rates.
Regardless of the strategy you chose one of the key things to remember as a first time buyer is a property investment is a medium to long term strategy. We advise to hold onto a period of minimum 5 years which is most likely when you will see a greater benefit for your investment (even better if you hold it for more than 10 years).