Fundamentals of Investing in UK Property

Don't be put off by the UK's currently slow-moving property market. Investing here can still bring you a decent profit from either a short term resale or by keeping hold of a property for a longer term gain.

But, as with most countries' property markets, if you're thinking of making a property investment, UK property requires familiarity with a few basic principles before you begin the purchasing process. As well as the obvious, investing in up-and-coming property hotspots and having a clear tenant strategy, there are other ways that you can maximise the returns on your UK property investment.

Despite the current economic climate, positive or negative changes to it in the future, as well as the location you choose can immediately create equity if you buy below market value. In terms of investment property, UK opportunities do exist which allow you to  make an instant profit, regardless of whether the local or national market is rising or falling.

Investing in UK property which is below market value may mean having to take on a renovation or refurbishment project or perhaps even a repossessed property. However, there are a number of UK property investment companies and auction houses that specialise in finding owners of distressed properties, looking for a quick sell and a good discount.

Although this can be daunting, particularly if you have little or no experience in this type of project, there are benefits to it. Many of these projects can be bought at up to 40% below market value. But patience is the key – always look around for the best deal.

If you are looking for investment property for sale, UK property offers strong opportunities.

Contrary to popular belief, property investment in UK locations is not just about ploughing money into up-and-coming 'trendy' hotspots. An increasing number of buyers are investing in places that are at present rundown but are also going through a huge redevelopment and regeneration program. This means the area has the potential to become a hotspot.

By tapping into the market early on, investors can expect strong dividends. As the area grows in popularity, prices will rise due to increased demand, sending profits soaring.

Of course, as with any big investment, there is an element of risk involved. It is not guaranteed that property prices in the area will rise and therefore it is left to chance. However, you can reduce the risk of making a bad investment by making sure the location ticks the following boxes:

  • The location is a town or city undergoing redevelopment and regeneration
  • It houses large businesses which have recently relocated to the area
  • The area is seeing big improvements to its infrastructure (road and rail links)
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*This page is provided for information purposes only and should not be construed as offering advice. Flex Profit Hub is not licensed to give financial advice and all information provided by Flex Profit Hub regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.