First Time Property Investor: what you need to know
There may be many reasons to start a property investment portfolio. But there are some fundamentals to consider, different investment types to look into, and the right structure for your business.
Taking the First Steps into property investment
Firstly, and most importantly you must treat your property investment portfolio like a business. That’s because it is.
Like all businesses there are some fundamentals to consider:
Investment options for a first time property investor
Buy to Let
The most popular type of property investment, buy to let is an investment where you purchase a property and let it to your tenant. There are some particular requirements in terms of safety, your responsibilities to your tenants, access to the property, and tenancy agreements. And you must have a specialist buy to let mortgage in place if you need to finance the property. Using a standard residential mortgage is not permitted except in very particular circumstances.
Buy to let properties typically fit into these categories:
- New developments
- Refurbished properties
- Older properties
Commercial Buy to Let
This is a version of buy to let where rather than letting a residential property the landlord lets a business property. That could be retail, office space, warehousing or manufacturing for example. There are particular requirements in terms of finance, and lenders consider this to be a higher risk.
Our sister company Liddle Perrett has published a blog sharing their tips to securing the best buy to let mortgage deal.
Buy to Flip
Property Loan Notes
Capital Gains Tax
Our sister company Will Protect can advise you on how best to leave your business assets to your family and loved ones