Nick Clark, managing director of Homebuyer Events, organisers of the show, says: “The key to this business as with any investment is to undertake thorough research. There's a whole range of options currently available aside from UK residential property, including property investment clubs, commercial opportunities and homes overseas. There are still substantial returns to be made by investing in property - with the buy to let boom by no means over.”
The property investor show has compiled a 10-point buy-to-let action plan:
1. Make sure you have a sound plan and stick to it.
2. Realistic returns - Speak to local letting agents to get a realistic view of the kind yields you could expect.
3. UK or abroad? - Understand the area in which you're investing. If you are considering investing overseas, go and visit the area yourself.
4. How you will manage the property? – If the property is not local you will have to consider using a letting agent to manage the tenancy, which can prove costly and will cut down your returns.
5. Never buy with your heart - always use your head and run the numbers to see how your investment stacks up.
6. Sort out your finance - If you don't know the finance rate or loan to values of a particular property you cannot forecast your profit or return.
7. Short or long-term tenants? - This depends on the type of property and where it is situated.
8. Decorate with simple but hardwearing furniture - you want to attract tenants, but at the same time, replacing furniture can prove costly.
9. Location, location, location - this is of paramount importance.
10. Make a decision on whether you want or need to maximise capital growth vs capital income - High rental income gives you good cash flow, whereas capital growth will give you big long term profits.