Thinking about investing in property? Here’s what you need to look at before you commit

Julie Brownlee, Fsp Invest, 03 Oct. 2014

Tags: investing in property, invest in property, property, property investing, properties,



When it comes to investing in property to rent out, you need to see what suits you best from a financial perspective.

You need to think about what will best suit your circumstances over the long-term.

So where should you start?

Let’s take a look…



Before you even look at properties, think about how you’re going to finance it


When it comes to investing in property, there’s no point finding a property to buy before you’ve worked out what you can afford and how you’re going to finance it.

So you need to decide how much of your own money you’re going to invest in the property. You also need to work out how much you’d need to borrow and over what period of time.


What if you have a lot of money to invest in property, but not a lot of income?


If this is the case for you, then putting as much as you can into your property and not borrowing or borrowing very little is likely to be the best option.

Just make sure you don’t put all your available capital into a property. Chances are you’ll need some of it in the future.


What if you have a high income, but not much capital to invest in property?


If this is the case for you, then you’ll have to speak to the bank about securing a bond. Most banks want a higher deposit for buy-to-let properties than your own home, so you’ll have to ensure you have enough for this.

You could also benefit from putting more into your investment property than the bond requires to build up your capital. And this will reduce your bond’s term.

So there you have it. What you need to look at before you commit to investing in property.

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