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Top Tips For First-Time Investment Buyers

Top Tips For First Time Buyers




When you set out to buy your first home, all of the variables can be overwhelming. Between deciding which areas offer the best investment yield, how to source a place with decent return on investment , and much more, the number of hours needed is too much for any working individual. If you are too busy to spend countless hours doing the research and footwork, this article will help you simplify and take the next best steps.


Property investment is one of the most stable and lucrative ways to invest - with so many variables in other economies, owning a property that you can let or sell is a stable way to increase your worth. That being said, there are strong and important strategies any first-time buyer can use when doing their research. That is why we have put together five important points that could really help in your first-time property purchase.


Without further adieu, let’s jump in!


#1: Property Investment - Where To Buy


The first thing a first-time buyer should consider is the suitability of the location and if it will meet their needs. Sometimes they think they must purchase a high-priced place in an upscale neighborhood or they go the opposite route and buy as low as possible in an area with potential. While both could be good ideas, they still need to understand how the property investment market works.


Similar to the stock market, you may want to buy low and sell high - but you also don’t want to buy in an area that doesn’t have anything up and coming. This is why we invest in Liverpool, as do all of our sourcing clients.


Property Investment in Liverpool is showing some impressive yields and returns right now and has been doing so for many years, and here is why:


1. YIELDS

The rental yields in Liverpool are some of the best in the UK.


Postcodes such as L1 & L7 offer an average of 8% yield. All properties in our portfolio currently have a minimum of 10%.


The average rental yield in Liverpool is 5.05% which is far higher than cities like London which has an average rental yield of 3.05%.


These are fantastic numbers and when investing, decisions are data-driven and this is what makes Liverpool such a smart choice when considering where to invest in property.


2. LOWER PROPERTY PRICES

Property prices are comparatively lower in Liverpool than other parts of the U.K. This means that Liverpool becomes attractive to investors from all over the world who are looking to grow their property portfolios, as well as first time buyers.


The average property in the U.K currently costs £233,000. In Liverpool, the average property costs £176,500. This is comparatively lower and makes sense when considering having a go at property investment for the very first time. Liverpool therefore offers far more value for money than most other parts of the country.


3. DEMAND

There is no point in buying a property if there is zero demand.


Liverpool has 4 universities and 12 Hospitals / Medical Centres. Liverpool is home to the University of Liverpool which currently teaches just under 25,000 students every year. Liverpool is also home to Liverpool Hope University, John Moores University and Edge Hill University.


This means that there is no shortage of people looking for rooms and houses to rent or buy within Liverpool and this is key when choosing where to invest in property.



4. CAPITAL GROWTH

While many parts of the UK are suffering from a gloomy outlook for 2020, Liverpool defies this with an annual growth rate of 4.1%. Rents are also set to increase by 3.5 % over the next 12 months.


Liverpool continues to outperform most other regions within the U.K year after year, again, ensuring greater value for money when considering where to invest in property.



5. INCREASED INVESTMENT

The city of Liverpool has been totally transformed over the past ten years by significant public and private investment.


According to Liverpool council plans, there are currently £14bn worth of investments currently underweight or due to get started over the coming months and years in the city of Liverpool. This amount of money being spent is astonishing and can only mean further success and great returns for those looking to invest in property in Liverpool.


This shows that Liverpool is open for business and will continue to attract further investment.


#2: Property Investment – Choosing Your Team


When looking for properties to invest in the easiest way is to utilise a knowledgable agency. It is important to do your due diligence and research your team. Here are a few things to look for when choosing the right people to help you choose a good investment:

  1. Track record

  2. Experience

  3. Understanding of the market

  4. Ability to refurbish quickly

  5. Options for buy-to-let property


Winova Properties, for example, we are made up of a dynamic duo with specific experience in buying and flipping properties for profit. After our own successful journey, we decided to turn our expertise into a service for others. We are able to find cracking deals for our clients, as we continue to grow and build our own portfolio in Liverpool too.


#3: Property Investment – Sourcing Your Property

If you think finding the right property is as easy as opening up the local paper or doing a quick search online you may be surprised to find that it’s not. Unlike buying or renting a flat finding the right balance for an investment property involves a lot of various factors that trained professionals in the field can help you with. Here are a few things to consider when sourcing:

  • Receive independent advice on where and what to buy based on your requirements

  • Contact with local letting agents

  • Communicating with builders for advice for refurbishing the property

  • An Overseer to monitor refurbishment

Using a skilled team will help you find the best property or properties for your investment as they will have inside market research and access to the various professionals you will need to access to understand the total cost of refurbishment, understanding the area and much more.

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