GETTING INTO PROPERTY? HOW TO FIND INVESTMENT PROPERTIES UK
Alexandra Ventress
February 29th 2024
Share this post
Start your property portfolio today!
Ever dreamed of owning a piece of the property market but unsure how to get started? You’re not alone! Investing in property can be a fantastic way to build wealth and secure your financial future, but navigating the world of investments, especially from scratch, can feel daunting. Fear not! This comprehensive guide will equip you with the knowledge and tools you need to find the perfect investment property in the UK, whether you’re a seasoned investor or a complete beginner. Let’s delve into the exciting world of property investment and unlock your path to financial success!
If you are looking at getting involved in the world of property investment, then you may be wondering exactly how much you may need to invest. Cash reserves play an important part when it comes to investing, as they are what you will use in order to finance any properties you wish to purchase. So what can you do if you are dreaming of getting involved with the property market but lack the cash funds to get started?
The good news is that although it can be challenging to get started in property with limited finances, it is not impossible. If you are willing to think outside the box and take chances to kickstart your investing journey, there may be several options available to you.
Below we take a closer look at some of the ways in which you can get into property with no money:
Lodger
One of the best ways that you can get your foot in the door when it comes to property is to take in a lodger. Through the government’s ‘Rent a Room’ scheme, landlords and live-in landlords can rent out a room in their home and earn as much as £7,500 a year, tax-free. In order to qualify, you will need to let out a furnished room or part of your main property to your lodger, but not a self-contained flat.
The good news is you don’t have to be a homeowner to qualify for this scheme, but you will need your landlord’s permission. The exception will be automatic if you earn less than £7,500, around £625 a month, and you don’t normally fill out a tax return. If you earn above this, then you will need to inform the tax office
It is worth bearing in mind that you will not be able to claim for properties that have been turned into separate flats. You also will not be able to qualify for reduced council tax and depending on your personal circumstances, it may also affect your Housing Benefit.
Rent to Buy
Another way that you may wish to look to get involved with property if you do not have the cash funds to buy a property outright is to get involved in a rent to buy property. You should carefully check the rental agreements for any potential properties beforehand, being sure to note whether it comes with the option to buy or an obligation to buy after a window of time has passed.
The best way to make rent to buy work for you is to research areas that are property hotspots, look into the average rental prices, and how many months rent you would need to pay before you own or could purchase the property. From here, you should aim to find a tenant who is willing to pay you a slightly higher rental income, paying the property owner the amount of rent in the tenancy agreement and keeping the rest as profit.
Property lease options
Another route that may be worth exploring is property lease options. Also referred to as PLOs or Purchase lease options, they allow you to control and get income from a property. Through a PLO you gain the right to buy a property but you are not obligated to do so.
A PLO works by agreeing on a payment upfront in order for the process to be legal. This amount is between you and the property owner’s discretion but can be as little as £1. From here, you then agree on a monthly payment to the owner, the length of time on the agreement, and how much you would purchase the property for. You will then be able to find a tenant and rent out the property to them for a profit.
The upside to a PLO is that you do not require a mortgage or a deposit. Should the value of the property go up beyond the agreed purchase price then you will reap the reward of instant equity. However, if the value falls, then you are able to hand the property back.
However, it is worth keeping in mind that PLOs are hard to find and in order to find one, you will need to look for those who are in negative equity.
Joint Venture
If you are not alone in your quest to become a residential property investor, then you may wish to look into a joint venture. Should a joint venture be an avenue you wish to pursue, you will need two or more people. From here, you pool your resources and knowledge to purchase an investment property. You can split the property between however many people are involved in the venture however you please. It does not need to be an equal split, you can determine shares by who has contributed what to the joint venture.
Real Estate Investment Trust (REIT)
A real estate investment trust, also referred to as a REIT is a company that owns and operates income-generating properties – like apartments, hotels, offices, and warehouses. They pool money from many investors, allowing you to participate in the real estate market without directly buying and managing properties.
REITs are a popular choice because you can invest in them through the stock market, in a similar way to buying shares in any other company. They are also required by law to distribute most of their taxable income to shareholders in the form of dividends, providing a steady stream of income. REITs also offer exposure to a variety of property types, spreading your risk and potentially mitigating individual property fluctuations.
However, it is also worth bearing in mind that there are downsides to getting involved with a REIT. Unlike directly owning a property, REITs as a rule of thumb, will offer little to no potential for capital appreciation as their value is tied to the company’s performance and not solely the underlying property values. Another disadvantage is that REITs are subject to market conditions and can experience price fluctuations, although this is the case with any opportunity with investing.
Property Crowdfunding
Since 2012, a new way to generate income for a rental property is to crowdfund. This involves a group of investors all pooling their money in order to purchase a property where everyone gets a share depending on how much they have contributed. From here, you are able to leverage the money as a loan which you can then use to finance a property purchase or a development.
This money is raised online through a crowdfunding platform. The beauty of crowdfunding a property is that the minimum threshold to invest can be incredibly low, as little as £10 depending on the venture.
Peer to peer lending
Unlike traditional routes for investing, Peer to Peer (P2P) lets you connect with borrowers online and earn potentially higher returns than traditional savings accounts. There are several P2P platforms online which connect lenders and borrowers, allowing you to browse property projects and choose investing opportunities that suit your goals. P2P property loans often offer fixed returns, shielding you from stock market fluctuations and potentially generating returns higher than traditional cash deposits. Similar to crowdfunding, P2P real estate lending provides an added layer of security as loans are typically backed by actual properties. This unique approach has made P2P property lending an increasingly popular choice for investors seeking alternative options to invest in with potentially higher returns and tangible asset backing.
As the UK’s leading property sourcing company, we can help you find investment properties across England and Wales. Join us today!
Different ways to invest in properties
Investing in property is an exciting opportunity that presents itself in many different forms. If you are looking to get started with investing in property, it is important to get a better understanding of the opportunities available to you.
When you think about classic investing options, Buy To Let will often be the first one to spring to mind. This staple option involves purchasing a residential property and renting it out to tenants. Often classed as a medium to long-term investment, BTL lends itself nicely to a wide range of property types.
Advantages:
- Consistent rental stream: Buy-to-let properties are a reliable source of income through regular rental payments from renters.
- Potential for capital growth: Over time, the property’s value may increase, allowing you to benefit from capital appreciation when you sell.
- Real asset: Owning a physical property serves as a hedge against inflation, potentially protecting your assets value.
Considerations:
- Market fluctuations: Property markets can be volatile, impacting both rental income and property value. This is an unavoidable aspect of investing in property and one that can affect all types of investment opportunities.
- Responsibilities: Unless you use a property management company, you’ll find yourself responsible for maintenance, tenant management, and repairs. This can eat into both your time and your savings.
- Risk of vacancy: Unoccupied properties can lead to lost income as you wait for new tenants.
Student accommodation is in a very similar vein to buy-to-let. It works by purchasing property and renting it out. However, these properties exclusively target students and are typically located in major cities or near university campuses.
Advantages:
- Consistent property demand: Student populations generate a reliable tenant pool due to their ongoing need for housing. This allows you a great potential for steady rental income.
- Higher potential yields: Sharing arrangements with multiple students can lead to potentially higher rental yields.
- Longer lease terms: Student leases often correspond to the academic year, providing stable income for investors.
Considerations:
- Demand centres on seasonality: Student accommodation is often at the mercy of seasonal fluctuations, leading to potential vacancies during summer breaks.
- Potential for increased wear and tear: Students may require more frequent maintenance due to potential higher wear and tear on the property.
- Location dependence: Property success heavily relies on proximity to educational institutions, potentially limiting location options and impacting the surrounding area’s overall appeal.
If a property is off-market it means that it is not publically advertised for sale. This can be down to a variety of different reasons, from an owner’s desire for privacy or for a more controlled sales process.
Advantages:
- Potential for lower prices: Off-market properties, due to reduced competition, may be available at potentially lower prices compared to those listed publicly.
- Access to exclusive options: Off-market offers the potential for investors to access unique investment opportunities not readily available on the open market.
- Lowered risk of bidding wars: Off-market transactions can bypass the competitive bidding process often seen in the public market.
Considerations:
- Limited availability: Finding suitable off-market properties requires more effort and resources compared to browsing public listings.
- Reliance on network: Accessing off-market deals often relies on building strong relationships with industry professionals like real estate agents or wealth managers.
Holiday home investments involve purchasing a property and renting it out for short-term stays to tourists or vacationers. These properties can range from beach houses to cabins and apartments and typically experience seasonal fluctuations in demand. However, some city-centre locations may see year-round occupancy depending on location.
Advantages:
- High potential income: During peak seasons, holiday homes can generate substantial rental income.
- Personal usage: Investors can enjoy the property for personal trips during off-peak periods.
- Potential for appreciation: Properties in popular tourist destinations may increase in value over time.
Considerations:
- Seasonal income variation: Similar to student accommodation, holiday homes experience fluctuations in rental income depending on the season. This can lead to quiet periods with little to no income generated.
- Management complexities: Managing a property located remotely can be challenging, especially regarding maintenance and frequent guest turnovers.
- Competitive environment: The holiday rental market can be highly competitive, potentially affecting occupancy rates and income.
An HMO (House in Multiple Occupancy)is an investment type that involves purchasing a property with multiple rooms and renting each room to individuals. While often associated with student accommodation, HMOs can house any type of tenant so can be less restricting.
Advantages:
- Potential for higher rental yields: Renting out individual rooms can lead to potentially higher returns compared to renting the entire property to a single family.
- Reduced vacancy risk: Even with some vacancies, other rooms can still generate income, offering some protection against lost income.
- Flexible rental arrangements: HMOs often allow for shorter lease terms, potentially enabling adjustments in rental rates to adapt to market conditions.
Considerations:
- Stricter regulations: HMOs are subject to specific regulations and licensing requirements, which can be more complex than the other opportunities mentioned.
- Increased management workload: Managing multiple tenants, coordinating individual leases, and maintaining shared living areas can be significantly more demanding compared to single-tenant rentals.
- Potential for conflicts: Shared living arrangements present a higher risk of conflicts among tenants, which can create additional management challenges.
For those wondering how to get into property investment, it can be overwhelming to know where to start. Check out our comprehensive guide below for our step-by-step guide to investing in property with The Property Sourcing Company.
1. Set your investment goals
Before you dive into property investment, you will first need to give some thought to what your goals are. You will need to consider the type of properties you are interested in and what type of investment you wish to be involved in. However, there will be two very important factors at play that will have the biggest effect on your goals, these are capital appreciation and long-term yield.
Capital appreciation refers to the potential for your property’s value to increase over time. Historically, the UK property market has shown positive growth, with values rising by up to 464% in the last 40 years. To maximise this potential, you should aim to focus on desirable locations and stay informed about market trends.
Long-term yield comes from rental income, providing a steady stream of cash flow. By investing in high-demand rental markets and maintaining your property, you can secure a reliable income stream that contributes to your financial goals.
For a well-rounded portfolio, consider aiming for properties that offer both capital appreciation and long-term yield. While capital appreciation can be impacted by market fluctuations, rental income offers stability throughout your investment journey.
2. Reach out and share your goals
Briefly introduce yourself and your property aspirations. Our team will contact you to discuss your specific needs, including preferred area, budget, and property type.
3. Active search
We’ll match your requirements against our extensive property database. If a suitable BMV deal exists, we’ll notify you immediately.
4. Proactive hunting
If no immediate match is found, our experienced team will actively seek new BMV properties aligning with your preferences. You’ll receive regular updates on their progress.
5. Streamlined Purchase
Once we find a suitable property, we’ll guide you through the purchase process. Our team is adept at handling fast property sales, including surveys, conveyancing, and strategic assistance. This ensures a smooth and efficient transaction for you.
6. Ongoing Support
Our relationship doesn’t end with your purchase. We’ll continue to inform you about new BMV opportunities that complement your portfolio, helping you build a successful investment strategy.
When it comes to seeking out real estate investing opportunities, there are plenty of options for investors. In the golden age of the internet, there are now more ways than ever to find investment properties. From online websites to auction houses, the possibilities for building your investment portfolio are limitless. Below, we explore some of your options for finding the right property…
Online Marketplaces:
Real estate listing websites: These platforms, like Rightmove, Zoopla, OnTheMarket, and PrimeLocation, allow you to search for properties based on specific criteria like location, price, type, and investment goals.
Specialised investment property websites: These websites cater specifically to investors and might offer additional features like property analysis or investment calculators. However, exercise caution as they may have biases towards promoting their listings.
Estate Agents:
- Local estate agents: They have local market knowledge and expertise, potentially helping you find off-market properties or negotiate deals.
- Investment property specialists: Some estate agents specialize in finding and advising on investment properties.
Other Channels:
- Property auctions: Auctions can offer potential for below-market prices, but require a deep understanding of the process and carry more risks.
- Networking with other investors: Attending workshops, conferences, or online forums can connect you with other investors who might have leads on properties. However, be wary of any unsolicited investment advice.
Exploring opportunities to invest in can be exciting, but navigating the vast online landscape can feel overwhelming. While there’s no single “best” website, different platforms cater to diverse investment styles and needs. Below we explore some leading websites across various categories, from real estate listing platforms to general investment research resources. Remember, thorough research and seeking professional financial advice are crucial before making any investment decisions.
Zoopla
Zoopla is an excellent tool for those conducting initial research into an area and seeking out potential areas to invest in. Thanks to Zoopla’s extensive property listings, Zoopla is ideal for those who wish to compare the various opportunities across different locations, types, and price points. Zoopla offers various search filters and features catering specifically to investors. These can help you refine your search based on investment goals, rental yields, and specific property characteristics relevant to different investment strategies. Zoopla also provides some market data and insights, enabling you to gain some understanding of local property trends and potential rental yields.
However, there are some downsides to Zoopla. Whilst it offers some market data, Zoopla primarily provides basic property details. Furthermore, additional research and due diligence are required to fully understand the investment potential and risks associated with a specific property. There have also been reports of inaccurate or outdated information on some listings. It is crucial to verify information independently and not solely rely on the platform’s data.
Rightmove
Rightmove, like other major property portals, can be a useful tool for your initial search and to get a broad sense of the market. As the UK’s largest property portal, Rightmove can provide investors with a vast database of properties and potential investment opportunities. Rightmoves listings often include comprehensive information, such as high-quality photos, floor plans, and neighbourhood descriptions, aiding your initial property assessment. Rightmove also has a section that is dedicated solely to investment properties, with tools and resources specifically geared towards investors.
Whilst Rightmove has investment-focused features, the site does primarily cater to homebuyers. This might lead to less emphasis on investment-specific metrics that some investors would find valuable. Its popularity means there is significant competition from other investors for high-demand properties.
OnTheMarket
Whilst it may not be the top choice for investors, OnTheMarket can offer a viable option for finding investment properties, particularly if you’re looking for properties listed by motivated sellers. Positioning itself on the market as a website which caters to sellers who are truly committed and motivated to sell their properties. This potentially means less time-wasting on listings with unmotivated sellers, who might be less likely to negotiate or close deals promptly. They offer features like “Property Alerts” which can notify you when new properties matching your investment criteria become available, potentially giving you an edge in a competitive market.
However, when compared to bigger portals such as Rightmove and Zoopla, OnTheMarket has a smaller market share. This might mean you have fewer properties to choose from, potentially limiting your options, especially in certain locations or for specific investment types.
PrimeLocation
PrimeLocation can be a useful tool for investors interested in the London property market. However, its limited geographic scope, potential bias, and subscription fees can be a huge turn-off for many. Due to PrimeLocations’ strong presence in the London property market, it offers a comprehensive database of properties specifically within this major city and its surrounding areas. This can be valuable for investors seeking opportunities in the London market. They offer features like rental yield calculators and investment guides, aiming to equip investors with resources to analyze potential returns and make informed decisions.
On the flip side of the coin, PrimeLocation’s strong focus on London means that it is incredibly limiting for many investors. Furthermore, whilst it offers some market data, it might be less extensive compared to established giants like Rightmove or Zoopla. This in turn could limit your ability to conduct detailed market analysis.
The Property Sourcing Company
If you are an investor seeking below market value properties you won’t be able to find anywhere else, then The Property Sourcing Company is the website for you. We offer our investors a streamlined investment process, taking care of everything so that you don’t have to. Want to find out more? Click the box below to join our investor database…
As with any investment opportunity, there are ups and downs to property investment. However, exactly how difficult it is to get into the property market will depend upon a variety of factors, such as:
The difficulty of getting involved with property depends on several factors, including:
Your financial situation:
- Down payment: A significant down payment is often required when purchasing property, which can be a major hurdle for many individuals.
- Income: Your income needs to be sufficient to cover mortgage payments, property taxes, insurance, and other costs associated with owning property.
- Credit score: A good credit score is essential for securing favourable mortgage rates, making the process more affordable.
The market conditions:
- Property prices: High property prices can make it difficult to find an affordable investment, impacting accessibility.
- Market competition: In competitive markets, securing a desired property can be challenging due to high demand and potential bidding wars.
- Interest rates: Rising interest rates can increase borrowing costs and make mortgage payments more expensive.
Your experience and knowledge:
- Understanding the process: Familiarity with the buying process, legal aspects, and property management can make navigation smoother.
- Investment strategies: Researching different investment options like buying to let, flipping, or REITs can influence your approach and potential challenges.
Overall, getting started in property can be challenging, especially for first-time investors. However, it doesn’t have to be. If you want to get involved with property and make investment work for you, we have the solution…
Although getting involved with property can feel overwhelming, it doesn’t need to. We’re The Property Sourcing Company, the modern day solution to investing. Whether you’re a seasoned landlord or a curious first-timer, we can help.
We understand the frustration of scouring online listings and hitting dead ends. That’s why we offer a different approach to property investment.
Our team of experienced professionals simplifies the process, allowing you to focus on what truly matters. With over 50 years of combined expertise, we specialize in sourcing off-market, director-to-vendor, and below-market-value (BMV) deals tailored to your specific needs.
From finding the ideal property to handling surveys and solicitors, we’re here every step of the way.
Ready to unlock the potential of property investment? Get in touch today and discover an alternative to traditional methods.
Alexandra Ventress
February 29th 2024
Share this post
Start your property portfolio today!
GETTING INTO PROPERTY? HOW TO FIND INVESTMENT PROPERTIES UK
Ever dreamed of owning a piece of the property market but unsure how to get started? You’re not alone! Investing in property can be a fantastic way to build wealth and secure your financial future, but navigating the world of investments, especially from scratch, can feel daunting. Fear not! This comprehensive guide will equip you with the knowledge and tools you need to find the perfect investment property in the UK, whether you’re a seasoned investor or a complete beginner. Let’s delve into the exciting world of property investment and unlock your path to financial success!
As the UK’s leading property sourcing company, we can help you find investment properties across England and Wales. Join us today!
If you are looking at getting involved in the world of property investment, then you may be wondering exactly how much you may need to invest. Cash reserves play an important part when it comes to investing, as they are what you will use in order to finance any properties you wish to purchase. So what can you do if you are dreaming of getting involved with the property market but lack the cash funds to get started?
The good news is that although it can be challenging to get started in property with limited finances, it is not impossible. If you are willing to think outside the box and take chances to kickstart your investing journey, there may be several options available to you.
Below we take a closer look at some of the ways in which you can get into property with no money:
Lodger
One of the best ways that you can get your foot in the door when it comes to property is to take in a lodger. Through the government’s ‘Rent a Room’ scheme, landlords and live-in landlords can rent out a room in their home and earn as much as £7,500 a year, tax-free. In order to qualify, you will need to let out a furnished room or part of your main property to your lodger, but not a self-contained flat.
The good news is you don’t have to be a homeowner to qualify for this scheme, but you will need your landlord’s permission. The exception will be automatic if you earn less than £7,500, around £625 a month, and you don’t normally fill out a tax return. If you earn above this, then you will need to inform the tax office
It is worth bearing in mind that you will not be able to claim for properties that have been turned into separate flats. You also will not be able to qualify for reduced council tax and depending on your personal circumstances, it may also affect your Housing Benefit.
Rent to Buy
Another way that you may wish to look to get involved with property if you do not have the cash funds to buy a property outright is to get involved in a rent to buy property. You should carefully check the rental agreements for any potential properties beforehand, being sure to note whether it comes with the option to buy or an obligation to buy after a window of time has passed.
The best way to make rent to buy work for you is to research areas that are property hotspots, look into the average rental prices, and how many months rent you would need to pay before you own or could purchase the property. From here, you should aim to find a tenant who is willing to pay you a slightly higher rental income, paying the property owner the amount of rent in the tenancy agreement and keeping the rest as profit.
Property lease options
Another route that may be worth exploring is property lease options. Also referred to as PLOs or Purchase lease options, they allow you to control and get income from a property. Through a PLO you gain the right to buy a property but you are not obligated to do so.
A PLO works by agreeing on a payment upfront in order for the process to be legal. This amount is between you and the property owner’s discretion but can be as little as £1. From here, you then agree on a monthly payment to the owner, the length of time on the agreement, and how much you would purchase the property for. You will then be able to find a tenant and rent out the property to them for a profit.
The upside to a PLO is that you do not require a mortgage or a deposit. Should the value of the property go up beyond the agreed purchase price then you will reap the reward of instant equity. However, if the value falls, then you are able to hand the property back.
However, it is worth keeping in mind that PLOs are hard to find and in order to find one, you will need to look for those who are in negative equity.
Joint Venture
If you are not alone in your quest to become a residential property investor, then you may wish to look into a joint venture. Should a joint venture be an avenue you wish to pursue, you will need two or more people. From here, you pool your resources and knowledge to purchase an investment property. You can split the property between however many people are involved in the venture however you please. It does not need to be an equal split, you can determine shares by who has contributed what to the joint venture.
Real Estate Investment Trust (REIT)
A real estate investment trust, also referred to as a REIT is a company that owns and operates income-generating properties – like apartments, hotels, offices, and warehouses. They pool money from many investors, allowing you to participate in the real estate market without directly buying and managing properties.
REITs are a popular choice because you can invest in them through the stock market, in a similar way to buying shares in any other company. They are also required by law to distribute most of their taxable income to shareholders in the form of dividends, providing a steady stream of income. REITs also offer exposure to a variety of property types, spreading your risk and potentially mitigating individual property fluctuations.
However, it is also worth bearing in mind that there are downsides to getting involved with a REIT. Unlike directly owning a property, REITs as a rule of thumb, will offer little to no potential for capital appreciation as their value is tied to the company’s performance and not solely the underlying property values. Another disadvantage is that REITs are subject to market conditions and can experience price fluctuations, although this is the case with any opportunity with investing.
Property Crowdfunding
Since 2012, a new way to generate income for a rental property is to crowdfund. This involves a group of investors all pooling their money in order to purchase a property where everyone gets a share depending on how much they have contributed. From here, you are able to leverage the money as a loan which you can then use to finance a property purchase or a development.
This money is raised online through a crowdfunding platform. The beauty of crowdfunding a property is that the minimum threshold to invest can be incredibly low, as little as £10 depending on the venture.
Peer to peer lending
Unlike traditional routes for investing, Peer to Peer (P2P) lets you connect with borrowers online and earn potentially higher returns than traditional savings accounts. There are several P2P platforms online which connect lenders and borrowers, allowing you to browse property projects and choose investing opportunities that suit your goals. P2P property loans often offer fixed returns, shielding you from stock market fluctuations and potentially generating returns higher than traditional cash deposits. Similar to crowdfunding, P2P real estate lending provides an added layer of security as loans are typically backed by actual properties. This unique approach has made P2P property lending an increasingly popular choice for investors seeking alternative options to invest in with potentially higher returns and tangible asset backing.
Different ways to invest in properties
Investing in property is an exciting opportunity that presents itself in many different forms. If you are looking to get started with investing in property, it is important to get a better understanding of the opportunities available to you.
When you think about classic investing options, Buy To Let will often be the first one to spring to mind. This staple option involves purchasing a residential property and renting it out to tenants. Often classed as a medium to long-term investment, BTL lends itself nicely to a wide range of property types.
Advantages:
- Consistent rental stream: Buy-to-let properties are a reliable source of income through regular rental payments from renters.
- Potential for capital growth: Over time, the property’s value may increase, allowing you to benefit from capital appreciation when you sell.
- Real asset: Owning a physical property serves as a hedge against inflation, potentially protecting your assets value.
Considerations:
- Market fluctuations: Property markets can be volatile, impacting both rental income and property value. This is an unavoidable aspect of investing in property and one that can affect all types of investment opportunities.
- Responsibilities: Unless you use a property management company, you’ll find yourself responsible for maintenance, tenant management, and repairs. This can eat into both your time and your savings.
- Risk of vacancy: Unoccupied properties can lead to lost income as you wait for new tenants.
Student accommodation is in a very similar vein to buy-to-let. It works by purchasing property and renting it out. However, these properties exclusively target students and are typically located in major cities or near university campuses.
Advantages:
- Consistent property demand: Student populations generate a reliable tenant pool due to their ongoing need for housing. This allows you a great potential for steady rental income.
- Higher potential yields: Sharing arrangements with multiple students can lead to potentially higher rental yields.
- Longer lease terms: Student leases often correspond to the academic year, providing stable income for investors.
Considerations:
- Demand centres on seasonality: Student accommodation is often at the mercy of seasonal fluctuations, leading to potential vacancies during summer breaks.
- Potential for increased wear and tear: Students may require more frequent maintenance due to potential higher wear and tear on the property.
- Location dependence: Property success heavily relies on proximity to educational institutions, potentially limiting location options and impacting the surrounding area’s overall appeal.
If a property is off-market it means that it is not publically advertised for sale. This can be down to a variety of different reasons, from an owner’s desire for privacy or for a more controlled sales process.
Advantages:
- Potential for lower prices: Off-market properties, due to reduced competition, may be available at potentially lower prices compared to those listed publicly.
- Access to exclusive options: Off-market offers the potential for investors to access unique investment opportunities not readily available on the open market.
- Lowered risk of bidding wars: Off-market transactions can bypass the competitive bidding process often seen in the public market.
Considerations:
- Limited availability: Finding suitable off-market properties requires more effort and resources compared to browsing public listings.
- Reliance on network: Accessing off-market deals often relies on building strong relationships with industry professionals like real estate agents or wealth managers.
Holiday home investments involve purchasing a property and renting it out for short-term stays to tourists or vacationers. These properties can range from beach houses to cabins and apartments and typically experience seasonal fluctuations in demand. However, some city-centre locations may see year-round occupancy depending on location.
Advantages:
- High potential income: During peak seasons, holiday homes can generate substantial rental income.
- Personal usage: Investors can enjoy the property for personal trips during off-peak periods.
- Potential for appreciation: Properties in popular tourist destinations may increase in value over time.
Considerations:
- Seasonal income variation: Similar to student accommodation, holiday homes experience fluctuations in rental income depending on the season. This can lead to quiet periods with little to no income generated.
- Management complexities: Managing a property located remotely can be challenging, especially regarding maintenance and frequent guest turnovers.
- Competitive environment: The holiday rental market can be highly competitive, potentially affecting occupancy rates and income.
An HMO (House in Multiple Occupancy)is an investment type that involves purchasing a property with multiple rooms and renting each room to individuals. While often associated with student accommodation, HMOs can house any type of tenant so can be less restricting.
Advantages:
- Potential for higher rental yields: Renting out individual rooms can lead to potentially higher returns compared to renting the entire property to a single family.
- Reduced vacancy risk: Even with some vacancies, other rooms can still generate income, offering some protection against lost income.
- Flexible rental arrangements: HMOs often allow for shorter lease terms, potentially enabling adjustments in rental rates to adapt to market conditions.
Considerations:
- Stricter regulations: HMOs are subject to specific regulations and licensing requirements, which can be more complex than the other opportunities mentioned.
- Increased management workload: Managing multiple tenants, coordinating individual leases, and maintaining shared living areas can be significantly more demanding compared to single-tenant rentals.
- Potential for conflicts: Shared living arrangements present a higher risk of conflicts among tenants, which can create additional management challenges.
For those wondering how to get into property investment, it can be overwhelming to know where to start. Check out our comprehensive guide below for our step-by-step guide to investing in property with The Property Sourcing Company.
1. Set your investment goals
Before you dive into property investment, you will first need to give some thought to what your goals are. You will need to consider the type of properties you are interested in and what type of investment you wish to be involved in. However, there will be two very important factors at play that will have the biggest effect on your goals, these are capital appreciation and long-term yield.
Capital appreciation refers to the potential for your property’s value to increase over time. Historically, the UK property market has shown positive growth, with values rising by up to 464% in the last 40 years. To maximise this potential, you should aim to focus on desirable locations and stay informed about market trends.
Long-term yield comes from rental income, providing a steady stream of cash flow. By investing in high-demand rental markets and maintaining your property, you can secure a reliable income stream that contributes to your financial goals.
For a well-rounded portfolio, consider aiming for properties that offer both capital appreciation and long-term yield. While capital appreciation can be impacted by market fluctuations, rental income offers stability throughout your investment journey.
2. Reach out and share your goals
Briefly introduce yourself and your property aspirations. Our team will contact you to discuss your specific needs, including preferred area, budget, and property type.
3. Active search
We’ll match your requirements against our extensive property database. If a suitable BMV deal exists, we’ll notify you immediately.
4. Proactive hunting
If no immediate match is found, our experienced team will actively seek new BMV properties aligning with your preferences. You’ll receive regular updates on their progress.
5. Streamlined Purchase
Once we find a suitable property, we’ll guide you through the purchase process. Our team is adept at handling fast property sales, including surveys, conveyancing, and strategic assistance. This ensures a smooth and efficient transaction for you.
6. Ongoing Support
Our relationship doesn’t end with your purchase. We’ll continue to inform you about new BMV opportunities that complement your portfolio, helping you build a successful investment strategy.
When it comes to seeking out real estate investing opportunities, there are plenty of options for investors. In the golden age of the internet, there are now more ways than ever to find investment properties. From online websites to auction houses, the possibilities for building your investment portfolio are limitless. Below, we explore some of your options for finding the right property…
Online Marketplaces:
Real estate listing websites: These platforms, like Rightmove, Zoopla, OnTheMarket, and PrimeLocation, allow you to search for properties based on specific criteria like location, price, type, and investment goals.
Specialised investment property websites: These websites cater specifically to investors and might offer additional features like property analysis or investment calculators. However, exercise caution as they may have biases towards promoting their listings.
Estate Agents:
- Local estate agents: They have local market knowledge and expertise, potentially helping you find off-market properties or negotiate deals.
- Investment property specialists: Some estate agents specialize in finding and advising on investment properties.
Other Channels:
- Property auctions: Auctions can offer potential for below-market prices, but require a deep understanding of the process and carry more risks.
- Networking with other investors: Attending workshops, conferences, or online forums can connect you with other investors who might have leads on properties. However, be wary of any unsolicited investment advice.
Exploring opportunities to invest in can be exciting, but navigating the vast online landscape can feel overwhelming. While there’s no single “best” website, different platforms cater to diverse investment styles and needs. Below we explore some leading websites across various categories, from real estate listing platforms to general investment research resources. Remember, thorough research and seeking professional financial advice are crucial before making any investment decisions.
Zoopla
Zoopla is an excellent tool for those conducting initial research into an area and seeking out potential areas to invest in. Thanks to Zoopla’s extensive property listings, Zoopla is ideal for those who wish to compare the various opportunities across different locations, types, and price points. Zoopla offers various search filters and features catering specifically to investors. These can help you refine your search based on investment goals, rental yields, and specific property characteristics relevant to different investment strategies. Zoopla also provides some market data and insights, enabling you to gain some understanding of local property trends and potential rental yields.
However, there are some downsides to Zoopla. Whilst it offers some market data, Zoopla primarily provides basic property details. Furthermore, additional research and due diligence are required to fully understand the investment potential and risks associated with a specific property. There have also been reports of inaccurate or outdated information on some listings. It is crucial to verify information independently and not solely rely on the platform’s data.
Rightmove
Rightmove, like other major property portals, can be a useful tool for your initial search and to get a broad sense of the market. As the UK’s largest property portal, Rightmove can provide investors with a vast database of properties and potential investment opportunities. Rightmoves listings often include comprehensive information, such as high-quality photos, floor plans, and neighbourhood descriptions, aiding your initial property assessment. Rightmove also has a section that is dedicated solely to investment properties, with tools and resources specifically geared towards investors.
Whilst Rightmove has investment-focused features, the site does primarily cater to homebuyers. This might lead to less emphasis on investment-specific metrics that some investors would find valuable. Its popularity means there is significant competition from other investors for high-demand properties.
OnTheMarket
Whilst it may not be the top choice for investors, OnTheMarket can offer a viable option for finding investment properties, particularly if you’re looking for properties listed by motivated sellers. Positioning itself on the market as a website which caters to sellers who are truly committed and motivated to sell their properties. This potentially means less time-wasting on listings with unmotivated sellers, who might be less likely to negotiate or close deals promptly. They offer features like “Property Alerts” which can notify you when new properties matching your investment criteria become available, potentially giving you an edge in a competitive market.
However, when compared to bigger portals such as Rightmove and Zoopla, OnTheMarket has a smaller market share. This might mean you have fewer properties to choose from, potentially limiting your options, especially in certain locations or for specific investment types.
PrimeLocation
PrimeLocation can be a useful tool for investors interested in the London property market. However, its limited geographic scope, potential bias, and subscription fees can be a huge turn-off for many. Due to PrimeLocations’ strong presence in the London property market, it offers a comprehensive database of properties specifically within this major city and its surrounding areas. This can be valuable for investors seeking opportunities in the London market. They offer features like rental yield calculators and investment guides, aiming to equip investors with resources to analyze potential returns and make informed decisions.
On the flip side of the coin, PrimeLocation’s strong focus on London means that it is incredibly limiting for many investors. Furthermore, whilst it offers some market data, it might be less extensive compared to established giants like Rightmove or Zoopla. This in turn could limit your ability to conduct detailed market analysis.
The Property Sourcing Company
If you are an investor seeking below market value properties you won’t be able to find anywhere else, then The Property Sourcing Company is the website for you. We offer our investors a streamlined investment process, taking care of everything so that you don’t have to. Want to find out more? Click the box below to join our investor database…
As with any investment opportunity, there are ups and downs to property investment. However, exactly how difficult it is to get into the property market will depend upon a variety of factors, such as:
The difficulty of getting involved with property depends on several factors, including:
Your financial situation:
- Down payment: A significant down payment is often required when purchasing property, which can be a major hurdle for many individuals.
- Income: Your income needs to be sufficient to cover mortgage payments, property taxes, insurance, and other costs associated with owning property.
- Credit score: A good credit score is essential for securing favourable mortgage rates, making the process more affordable.
The market conditions:
- Property prices: High property prices can make it difficult to find an affordable investment, impacting accessibility.
- Market competition: In competitive markets, securing a desired property can be challenging due to high demand and potential bidding wars.
- Interest rates: Rising interest rates can increase borrowing costs and make mortgage payments more expensive.
Your experience and knowledge:
- Understanding the process: Familiarity with the buying process, legal aspects, and property management can make navigation smoother.
- Investment strategies: Researching different investment options like buying to let, flipping, or REITs can influence your approach and potential challenges.
Overall, getting started in property can be challenging, especially for first-time investors. However, it doesn’t have to be. If you want to get involved with property and make investment work for you, we have the solution…
Although getting involved with property can feel overwhelming, it doesn’t need to. We’re The Property Sourcing Company, the modern day solution to investing. Whether you’re a seasoned landlord or a curious first-timer, we can help.
We understand the frustration of scouring online listings and hitting dead ends. That’s why we offer a different approach to property investment.
Our team of experienced professionals simplifies the process, allowing you to focus on what truly matters. With over 50 years of combined expertise, we specialize in sourcing off-market, director-to-vendor, and below-market-value (BMV) deals tailored to your specific needs.
From finding the ideal property to handling surveys and solicitors, we’re here every step of the way.
Ready to unlock the potential of property investment? Get in touch today and discover an alternative to traditional methods.
Large discounts on property
Completely transparent
Tailored investment opportunities
We’ll handle everything for you
Looking for hassle free property?
We’ve got you! Whatever your motivations as a landlord or property owner are, we can help source and match property with you.
When the foundations of your company are built upon industry knowledge and experience, you can’t help but be a self-confident company.
Here at The Property Sourcing Company, we are led by a roster of industry experts who have over 50 years of combined experience in doing BMV property deals, as well as packaging them up for investors.
Quality sits at the heart of our team, who go the extra mile to tailor our service to you. We pride ourselves in our ability to source you a wide variety of high-yield property investments.
Get in touch and we’ll establish what type of property you’re searching for, before talking you through our current investment opportunities. We’ll also keep you posted as we acquire new deals.
When you buy your investment property through us and we’ll take care of solicitors, surveys – everything – all to ensure you have a stress-free property purchase. It’s just one of the ways we make investment work for you.
Why invest with us?
Simply put, we’ll get you the best possible deal. Our sister company, The Property Buying Company, have been in the property buying industry for years & we have access to all their stock which is at a price point that is ready for investors to buy and make a great return on.
No middlemen, no stress & no hassle. We make investing in property and growing your portfolio as easy as it possibly can be.
