Are you a property investment virgin?

Are you a property investment virgin?

There’s nothing to be embarrassed about. There’s a first time for everything and the same is true of property investing. If you’ve never taken the leap before then you no doubt will be apprehensive but, like everything else, the more experience you gain, the easier it becomes!

Investing in property for the first time is a big decision. You need to look at the pros and cons of doing it and whether it’s right for you and your personal circumstances. Whilst there are some superb returns that can be made, you need to go into property investing with your eyes open. If you go into it unprepared and end up making some poor decisions, then you can easily come unstuck so if you’re new to property investment it pays to take a balanced view. Firstly, let’s look at the pros of property investment and why so many people are now taking the plunge:


Capital growth – with the current state of the housing market then there’s a very good chance that the value of your property will grow over time. Through renting out your property, you stand to benefit from not just capital growth but also from the monthly rental returns that you will enjoy

Meeting the mortgage payments – through regular monthly rental you can easily cover the costs of any mortgage you may have taken out on the property.

Offsetting costs against tax – when you complete your tax return you will be able to offset the cost of your buy-to-let investment against tax. If you’re unsure how, speak to an accountant.

Long term investment – It is well documented that investing in property is likely to yield better returns than ISAs, bonds and equities etc so you will achieve a better return on investment.


Extra costs –  with any property investment there are always associated costs such as stamp duty, conveyancing fees, water rates, insurance etc. Make sure you understand all the costs involved and that you budget for them appropriately.

Rent-free periods – there could be occasions when you can’t get a tenant for your property so it will lay empty, not deliver any rent and you will still have to make the mortgage payments.

Bad Tenants – you may be unlucky and have to deal with bad tenants who default on payments or even damage your property.

Financial Liquidity – if you decide to sell the property then it’s likely to take longer for you to see the money than it would be with other more traditional investments such as shares, equities etc

Property investment shouldn’t be taken lightly and we highly recommend speaking to a Financial Advisor before parting with any of your hard-earned cash. Whilst there are many investors who make a great profit from property investments, there are those who don’t quite make the profits they were hoping for. Make sure that you fall into the first category.