Across the UK, Newcastle Upon Tyne is one of the cheapest major cities for property values according to Hometrack. With the average purchase price in Newcastle being £129,700, this makes investing in a City Centre location more affordable.
Property investment involves buying property with the aim of generating a financial return.
With direct property investment, the investor owns a physical property and may benefit from:
A standard buy to let is one of the most common approaches. The investor purchases a residential property and rents it to a tenant, using the rent to cover mortgage payments, maintenance costs and other expenses.
Property investing can also include houses in multiple occupation, serviced accommodation and refurbishment projects.
Indirect alternatives include property funds and real estate investment trusts. These provide exposure to real estate without owning and managing a rental property directly. They can behave more like stock market investments than physical property ownership.
Seven Keys specialises in helping investors purchase, prepare and manage residential property in the UK.
Your property investment journey should begin with a clear plan, not a property listing.
Before you start investing, decide what you want the investment to achieve. Some investors prioritise steady rental income. Others focus on long-term capital growth or buying a property that can be improved.
A suitable property investment strategy should consider:
The right approach will depend on your circumstances. A strategy that suits an experienced investor with a large investment portfolio may not suit someone purchasing their first investment property.
Different property types attract different tenants, costs and management requirements.
A standard house or flat may suit investors looking for a relatively straightforward buy-to-let property. An HMO may produce more rental income but usually comes with greater licensing, compliance and property management responsibilities.
A refurbishment property could offer capital appreciation if it is purchased and improved at the right cost. However, building work can exceed its budget and delay the point at which the property starts producing rent.
The right property should:
Avoid choosing a property simply because it appears cheap or is promoted as a high-yield opportunity.
The UK property market is made up of thousands of local markets. Property prices, rental yields and tenant demand can vary considerably between cities, neighbourhoods and even nearby streets.
Average property prices provide useful context, but they do not tell you whether an individual property is a sound investment.
When assessing an area, look at:
Speak to local estate agents and letting professionals, but check their claims against recent evidence.
Do not rely only on how much rent appears on an online listing. Find out how much rent comparable properties have actually achieved, how long they took to let and what type of tenant they attracted.
There are several places to invest in property in the North of England, however, it is arguably even better to invest purely in the North East. With the coupling of cheaper properties, high rental demand and good prospects for rising property prices, it’s a great formula for investor success. Here’s our investor buying guide for purchasing property in the region.
Across the UK, Newcastle Upon Tyne is one of the cheapest major cities for property values according to Hometrack. With the average purchase price in Newcastle being £129,700, this makes investing in a City Centre location more affordable.
The Chronicle local press report shows that although prices are increasing across the region, they are certainly areas with falling prices that enables a larger net yield on your investment. Read the report here.
Before investors purchase a property, it should be assessed as both a rental home and a future saleable asset.
Compare the asking price with recent sales of similar residential property. Consider the condition of the roof, heating, windows, electrics and plumbing, as well as signs of damp, movement or poor maintenance.
A viewing can identify visible concerns, but it should not replace an appropriate professional survey.
For flats, check the lease length, service charges, ground rent, planned major works and any restrictions on letting. For houses, investigate local licensing rules and whether the property is suitable for the intended tenant.
The right property should make sense after realistic costs are included. A high advertised yield can quickly become less attractive if the property requires constant repairs or has expensive service charges.
The amount required to buy an investment property is wider than the deposit.
Your budget may need to include:
Investors should also retain money for future maintenance costs, void periods and unexpected repairs.
Tax rules depend on individual circumstances and can change. Investors should obtain advice from a solicitor, accountant or tax adviser before buying property.
Contact Seven Keys to learn more about working with estate agents in Gateshead offering property sourcing, property management, sales, and lettings. Discuss the right service for your goals and take the next step with a team focused on clarity and long term value.
Are you looking for a new website? Contact Outrank Today
