Top tips for property investors in 2024
Feb 28, 2024
The London property market ended 2023 with a 12% year-over-year increase in rents, as reported by Rightmove, and this trend seems set to continue throughout 2024. Property investors can maximise their returns by following these straightforward and practical tips from Benham&Reeves.
CAPITAL GROWTH VERSUS RENTAL YIELD OR A MIX OF BOTH?
Capital growth and rental yield are the two most important metrics for any property investor. However, they aren’t mutually exclusive. While capital growth is rewarding in the long term, rental yields provide an immediate source of income. Having an investment strategy that focuses on consistent rental yields backed by a vision of holding the property long enough to reap significant capital gains is one of the best ways of maximising your investment.
CONSIDER YOUR IDEAL TENANTS
Knowing your tenant profile is a crucial step in the journey of a successful landlord. You need to factor in their lifestyle and commute needs as well. For example, students need an academically nurturing environment and a quick commute to their university. Similarly, working professionals need well-furnished homes with good transport links to the office. Understanding tenant needs and catering to them will make your property desirable and help you earn better rentals than the market average.
BE AWARE OF TAX/LEGAL REQUIREMENTS
Like any other investment, owning real estate is also subject to multiple taxes and duties. In addition to the financial obligations, property owners also have legal obligations, which include declaring their income proofs and source of funds. Based on these declarations, mortgage rates and taxes are calculated. You will need to be on top of all these requirements, for which consulting with seasoned property experts and solicitors will help. To make things a little easier, we have put all the property jargon you are likely to come across in this simple guide.
IMPORTANCE OF FURNISHING TO MAKE YOUR PROPERTY STAND OUT
For buy-to-let investors, furnishing plays a significant role in securing high-yielding tenants with longer tenancies. Professional renters are willing to pay a premium for well-dressed homes with stylish furniture. There is a difference in the furniture sourced from a store versus the expertise of a professional with experience in the London rental market. To get you the best deal on furniture and maximise your rental potential, our sister company, InStyle Direct, has a range of landlord furniture packs styled by professional interior designers.
INVEST IN YOUR AGENT BEFORE INVESTING IN YOUR PROPERTY
Many hands make light work, and when it comes to maximising your London property investment, the committed hands of your agent can simplify the experience. From sourcing your tenants and taking care of all their needs to meeting all the legal and tax obligations, your agent is your partner in the investment journey. They will help you get the best out of your property, so choose your agent wisely.
Other top tips include: the importance of research and location, the reputation of the developer, the importance of due diligence, understand your finances and the importance of a professional property management service. Read the full article.
