As the world is constantly changing and people migrate towards the big cities, investing in a property in these areas is always considered a wise move. However, before making such a critical investment you need more information, don’t you? Here are our top 3 things to consider before you acquire your next buy-to-let investment:
First you need to research for the best possible location.
Whilst some locations might look more attractive than others, you need to look in the long term. For example, future government plans, local regeneration plans, business development investments or major events will all impact on buy-to-let investment hotspots. Moreover, you need to consider the demographic situation in the area. If the population is young, the demand for renting apartments is higher as not many students or recent graduates can afford to pay a mortgage. Cities with a thriving young population in UK include Birmingham and Coventry. In fact Birmingham is the youngest major city in Europe with 40% of the population under 25.
Other factors which make Birmingham an investment hotspot are the Smithfield Masterplan, being official host of the Commonwealth Games in 2022 and the latest urban redevelopment – Paradise.
You can find the best Birmingham investment hotspots here.
Most people have a limited budget when it comes to investing. In order to decide which buy-to-let opportunity will have the best ROI (return on investment) you need to research average prices for your chosen location.
Regeneration plans can influence the increase of property prices. If you’re one of the first investing in an up and coming area, your property can increase rapidly in value. For instance, according to a Knight Frank report the average price per square foot in Birmingham is currently between £425 to £450, with a predicted increase to £500 by 2020 for property in the vicinity of development projects.
3. Payment Plans
Investment companies will offer different payment plans. Some will ask for 10% deposit as a lump sum, other ask for less than 5% of the property price. Depending on the company and the property, the monthly payment plans also differ. Prosperity Wealth is able to offer its clients a plan which does not require a mortgage called the “No Mortgage Payment Plan”. If you want to find out more about this payment plan contact us today – click here.