Investor's Buying Guide
You deserve a dependable guide who can answer your investment questions, helping you make informed decisions. No need to spend endless hours online, trying to find the ideal property for your investment. The Northern Hotspots team is here, to provide advice, guidance and TOTAL CLARITY with no confusion or hidden risks and charges. Our buy-to-let and property sourcing team are dedicated to working hard for you ! Finding the right property, using their local market knowledge, due diligence and negotiation skills to secure the best property investment deals for you, according to your T.A.R.G.E.T CRITERIA and personal circumstances and preferences. Our property sourcing service will save you time, effort and money.
Our Definitive & Expert Buying Guide is HERE
HOW THIS IS ALL WORKS ?
We know that investing in property is one of the most important decisions in our CLIENT’S lives, so Every penny of our investors has an emotional and financial value for us. We like to know our client on one to one basis, understanding their goals, objectives, budget and investment criteria.
TAKING ACTION: First step to invest is to make a contact with a property consltant :
1/- Discovery Call - Expert Consultation - Custom Strategy
Get in touch with our friendly team today to discuss your situation and start laying out a plan to secure maximum return on your investment. You can call us, email us or fill up the form and give us details about your investment plans and targets. Our friendly team will contact you by phone or email to discuss your situation, expectations and the options available to you.
- We’ll set out what your objectives are and what you hope to achieve.
- What are your timescales? Should you consider short or long-term investments?
- What portion of your self-managed funds should you invest?
- What attitude towards risk should you adopt & at what point?
After bringing all the information together, we then strategize, lay out your options and develop a clear action plan for you to follow. It’s a vitally important step of the process that we set goals of what you want to achieve with your investment as the success of your investment strategy will be measured against your objectives.
Some people spend years in this life tinking about investing in property but they never do it, simply because they never made that phone call and they never find out about the options available for them.
Don't be one of them. Take action today and get in touch with us.
You can call us by phone, email us : Contact@norternhotspot.co.uk or filling ou investor's form.
2- Finding the Right Property for you:
When looking for a property, the first thing you need to do as a buyer is to decide on what criteria you want to meet. Property price & location, property size, number of bedrooms and bathrooms required, Garden, transport links, schools, hospitals, amenities, Of course, also making sure that all of this is within your budget. As you need to consider how much you can afford on your monthly mortgage payments, along with fees and expenses such as the deposit and Stamp Duty. The Northern Hotspots UK, can give you access to a wide range of off-market investment properties, with an average of %7 annual rental yield and year on year of %4 to %6 consistent capital growth appreciation.
We can advise and guide you throughout the entire process, selecting the best property investment deals for you according to your property criteria and financial situation, assisting you with the legal process, refurbishment upon your request and renting to potential customers, minimizing risk investment in every stage of the process.
3/ Attend Property Viewing
We do all the leg work for you at first, conducting viewing of different properties and locations, our expert sourcing team do all the negotiations with sellers and due diligence for you, to make sure the property is %100 suitable for you personally and matching up with your criteria and investment goals.
Once you’ve found a property you like, You Or we book a viewing for you directly with the property owner or through its estate agent and give them your details. You can carry this out with the Northern Hotspots through our online portal or by giving us a call.
4/ - Making / Accepting an offer
After viewing the property and you are happy to commit yourself to buying it, at this point, you need as an investor client to accept the offer, along with providing information on your mortgage and any details regarding the property you currently own. For example, whether you’re in a chain, no chain, new buyer etc.
5/ - Arranging a mortgage
It’s essential that you know exactly how much you can borrow and what you can afford. There are different ways you can organise a mortgage, one of which is a visit to your local bank where they will go through your finances with you. However, this will limit you to the mortgage offers that only your particular bank can offer.
Here @ The Northern Hotspots Sourcing UK, we can put you in touch with qualified mortgage advisers who can sit down with you and find the best financial deal to suit your situation.
6/ - Arrange for a solicitor/ conveyancer
The solicitor/ conveyancer will handle all the legal work regarding your property. This can be both for the buying of a property and the selling of your current property. Ideally, you would already have a solicitor/ conveyancer ready to proceed so the process of transferring property deeds can be carried out as quickly as possible. Your solicitor/ conveyancer will also tell you exactly how much you will be paying for fees, along with submitting searches to the local council to check whether there are any local issues or planning issues that may affect the value of the property. These searches typically cost around £250-£300.
The solicitor/ conveyancer will handle all the legal work regarding your property. This can be both for the buying of a property and the selling of your current property. Ideally, you would already have a solicitor/ conveyancer ready to proceed so the process of transferring property deeds can be carried out as quickly as possible. Your solicitor/ conveyancer will also tell you exactly how much you will be paying for fees, along with submitting searches to the local council to check whether there are any local issues or planning issues that may affect the value of the property. These searches typically cost around £250-£300.
7/ - Organise a Survey Your mortgage lender will require a survey to be carried out in order to ensure the property is worth the price you’re paying. This will usually be arranged for by the mortgage lender. This type of survey will be a very basic survey purely to satisfy the lender. If you require an extensive survey to go into more detail then you can upgrade the survey or you can commission your own. This extended particular survey should alert you to any potential problems with the property.
8/ - Exchange Contracts
Your conveyancer will approve a draft contract once they have received the local searches and all outstanding enquiries have been dealt with. A formal mortgage offer from the lender will be issued, which will be required to be signed by you. From this point contracts can be exchanged and signed, however, you should read through the contract first and make sure you are happy with what the seller is leaving behind. Once you have exchanged contracts, you and the seller are legally committed to the buying and selling of the property. A deposit may be paid at this point, normally around 5-10% of the purchase price and you will need to take out buildings insurance as you are now the legal owner of the property.
9/ - Completion!
Congratulations. You’ve just purchased your new home. Completion can take place straight away, however, it is usually between one and four weeks after you exchange contracts so that the solicitors can organise a date and transfer money. Once this has all gone through you can collect the keys and begin your journey in your new home. It’s time to celebrate!!
Tips for our investors
By following this checklist, first-time property investors can navigate the complexities of real estate investment and make informed decisions that lead to long-term success. Proper planning, research, and financial management are essential to ensuring that your first property investment is profitable and sustainable.
1/- Creat budget for Ongoing Expenses:
Maintenance and repairs: Budget for regular maintenance, such as lawn care, plumbing repairs, and appliance replacements. Expect to spend about 1-2% of the property’s value each year on upkeep.Property management fees: If you hire a property management company, expect to pay between 8-12% of the monthly rent as a management fee.
Insurance: Landlord insurance policies are essential to protect against property damage, liability, and loss of rental income due to disasters.
Utilities: If utilities like water, gas, or electricity are included in the rent, factor these costs into your budget.
Homeowners association fees: If your property is part of a community with an HOA, you'll need to budget for monthly or annual fees.
2/- Monitor and Manage Your Investment:
Track income and expenses: Keep detailed records of all rental income and expenses, including maintenance costs, taxes, and insurance. This will help you manage cash flow and file accurate tax returns.
Evaluate property performance: Periodically assess the financial performance of your property. If it’s not generating the expected return, consider strategies to increase rent or reduce costs.
Property upgrades: Invest in property improvements that can increase rental value, such as new appliances, fresh paint, or landscaping.
Plan for contingencies: Set aside funds for unexpected repairs or vacancies to avoid financial stress.
Consider refinancing: If interest rates drop or your property value increases, you may be able to refinance your mortgage to lower monthly payments and increase cash flow.
3/- Understand Your Financing Options:
Traditional mortgage: Most investors use a conventional loan to finance their property purchase. Explore different loan options and find the best interest rate and terms.
Private lenders: Some investors opt for private lenders or hard money loans, which can offer more flexible terms but often at higher interest rates.
Seller financing: In some cases, the property owner may finance the deal themselves, allowing you to bypass traditional lenders. This can offer more flexibility but also carries risks.
Home equity loan: If you own a home, you can use a home equity loan to finance your investment property. This option typically has lower interest rates.
Partnerships: Consider forming a partnership with other investors to pool resources and share risks, particularly for larger investments.
4/- Understand Tax Implications:
Property taxes: Research property tax rates in the area and how they impact your overall investment return.
Capital gains tax: If you plan to sell the property in the future, understand how capital gains taxes will affect your profits.
Depreciation: As a property investor, you can take advantage of depreciation deductions to reduce your taxable income. Consult a tax professional to learn how to maximize these benefits.
Rental income tax: Remember that rental income is taxable. Make sure to set aside funds to cover taxes on rental income each year.
1031 exchange: If you want to sell one property and invest in another, consider using a 1031 exchange to defer capital gains taxes.
5/- Legal and Regulatory Considerations:
Landlord-tenant laws: Familiarize yourself with local landlord-tenant laws, including rent control regulations, eviction procedures, and tenant rights.
Leasing contracts: Use a legally binding lease agreement that outlines rent terms, security deposits, maintenance responsibilities, and other important details.
Fair Housing Act compliance: Ensure you comply with the Fair Housing Act, which prohibits discrimination based on race, color, religion, sex, national origin, disability, or family status.
Zoning laws: Verify that the property complies with local zoning laws, especially if you plan to make improvements or changes to the property’s use.
Insurance requirements: Some areas may require landlords to carry specific types of insurance, such as flood or earthquake coverage.
Key Considerations for UK Property Investment
It is very important to consider these key factors which determine the success or failure of any property investment project.
Location: Areas with strong demand, good transport links, and development plans.
Market Trends: Staying informed on property price fluctuations and rental yields.
Financing Options: Mortgages, private funding, and leveraging capital.
Tax Implications: Stamp duty, capital gains tax, and rental income tax.
Legal Requirements: Landlord responsibilities, tenancy agreements, and property compliance.