If you are considering making your very first property investment in the UK, you may well be confused or concerned about different aspects of the investment. UK buy-to-let investing is a very popular form of making a financial investment, and whether you are looking at buying residential or student property, you may be about to embark on a very profitable journey.

However, to ensure that you make the most out of your property investment, it is extremely important that you don’t dive right into it without conducting thorough research. In order to help you with your very first buy-to-let investment in the UK, we have created a list of our top tips.

Research Everything!

The best tip that anybody could ever give to somebody that is about to make their first property investment is to make sure that you have researched everything and anything related to your investment. Even if you think something may not apply to you or that something will have no impact upon your and your investment, research it anyway just to be sure. By conducting so much research, not only do you develop a high level of understanding that will stand you in good stead with your investment, but it also reduces the risk of any unexpected surprises, and helps you to prepare for every situation.

Consider the Property and your Target Tenants

Finding the perfect property might be difficult, but it is certainly something that you should be aiming for. You should already know what type of property you might be looking to invest in, so now it is all about finding your ideal property in the right location. Firstly, you should look at locations that are known for achieving good rental income, and compare properties within that location, with the hope of finding a property that you like.

In terms of the location of the property, you should also consider what is close by to the property, such as shopping centres, transport links, universities and schools, thinking how this might attract potential tenants to your property. By understanding the property type and then establishing type of tenants that you may wish to target your property at, you can begin to see which local amenities may appeal to them most. All of this information can be used within your property search, and will give you a great chance of finding a successful property.

Property Investment Finances

Before making any investment, it is essential that you evaluate the finances behind it, to ensure that the investment is going to be worthwhile and that it will generate profit. A first time buyer is encouraged to go through the property market, looking in great detail at how the finances of individual properties would add up. The ideal combination would be a high rental yield from a low cost property that appreciates in capital value, and although it may be difficult to find the perfect scenario, making calculations of different properties in different areas will certainly help you.

Be Aware of the Relevant Taxes

Taxes are a very annoying, yet important part of a property investment, and so it is essential that you understand which taxes will apply to you, particularly as they can impact the amount of money that you generate. Tax charges for property investors include but are not limited to:

Stamp Duty Land Tax – This tax is due when you purchase a property, and is dependent on the purchase price of your property. As investors already own their main residence, an additional 3% is now due on the original stamp duty charges that apply to property purchases.

Income Tax – Dependent on your income tax band, investors are required to pay tax on the rental income received through the property, with the basic rate set at 20%.

Capital Gains Tax – Charged when you sell your property, you will be required to pay a certain amount of Capital Gains Tax on the profit that you make from the sale.