The UK buy-to-let market continues to make great strides in 2023, as stability returns to the industry following a string of economic challenges. Now more than ever, we get contacted by investor looking to diversify into property but struggle to know where to start.
It’s easy to see why when you consider all the potential permutations, from residential and student property, to loan notes and short-term lets. There is certainly an option that will fit each individual, but before you discern that answer, it's important to understand the basic principals.
Generally speaking, when investing in UK buy-to-let, you can be as involved as you desire. Indeed, the vast majority of investors who contact us about off-plan investments afterwards enter into agreements with management firms to take care of the property's day-to-day operations.
Maintenance difficulties like water leaks, broken heating systems, or other minor mishaps, as well as the ad hoc administration of renewing tenancies and the associated paperwork, are common day-to-day activities that emerge in this situation.
In principle, after making an investment in a property and signing the necessary documents, you can choose to take a fairly hands-off approach to the entire procedure. For property owners with a variety of properties in their portfolio, property management is surprisingly reason able and frequently the standard.
One of the key benefits of investing in UK property is the ability to purchase a well-performing asset while simultaneously receiving a steady passive income that takes little to no effort on the part of the property owner. Figures from JLL show the UK property market will grow by more than 8% over the coming 5 years, illustrating strong confidence in the space.
With clear growth comes stability, which gives confidence to those looking to make a move into property. You should always set out your goals, which could be as simple as how much capital growth you hope to achieve, or maybe a fixed monthly income that will be used to invest elsewhere.
Once you have the plan in place, you can look at which model fits your own personal liquidity needs. By then selecting a more hands-off organisation, whom will manage your assets, you can rest in knowledge that your capital is secured in a tangible asset that will always form the basis of any modern society.