Unlocking property investing: A beginner’s roadmap.

Starting out in property investing can feel like a big leap, right? With all the terms like capital growth, turnkey and yields, it’s easy to get lost in the jargon. But the good news is, property investing is actually more straightforward than it seems — especially if you take it one step at a time and have a clear plan in place.

This guide will walk you through the basics of property investing, helping you understand the key things you need to know to get started. Whether you’re new to property or just looking for a bit of extra guidance, we’ve got you covered!

1. Start with your goals.

Before you dive into buying property, take a moment to think about why you want to invest. What are you hoping to achieve? Are you looking to earn some extra income on the side? Or maybe you’re planning for the long-term and want to build a property portfolio that helps you retire comfortably? Or perhaps you’re ready to take the plunge and focus on property full-time?

Your goals are important because they’ll help shape your strategy and guide your approach. For example:

• Short-term goals might involve buying a property, fixing it up, and selling it for a quick profit.

• Long-term goals could focus on generating steady rental income or building wealth through property value growth.

Once you’ve got clarity on your goals, you’ll have a much easier time deciding what type of property to invest in and which strategy suits you best.

2. Active or passive investing?

There are two main ways to invest in property: active or passive.

Active Property Investing
If you love getting involved in all the details — from managing renovations to working with tenants directly — active investing could be your thing. Keep in mind, it will take more time and effort, and there may be some challenges along the way!

Passive Property Investing
If you’d rather let someone else handle the day-to-day work, passive investing could be a great choice. You can still earn from property, but without the hassle of dealing with tenants, repairs, or even finding the properties yourself. Options like using letting agents or working with property portfolio builders can help you stay hands-off while still making money.

3. Choose your strategy

Now that you know how much time and effort you’re willing to put in, it’s time to pick your strategy. Here are a few approaches many beginners start with:

Buy-to-let (BTL)
This is when you buy a property and rent it out for regular income. Often, these are ready-to-go properties that don’t require any work, so you can start renting straight away. Over time, you should also see an increase in property value. This strategy is great for long-term, steady income.

Buy-to-sell (Flipping)
If you’re looking for quicker profits, flipping might be the way to go. You buy a property that needs some work (maybe a full renovation or extension), improve it, and then sell it for a profit. It requires more time and expertise but can lead to high returns.

BRRR (Buy, refurbish, refinance, rent)
This popular strategy involves buying a run-down property, fixing it up, refinancing to free up cash, and renting it out. It’s a smart way to build wealth over time, especially if you’re ready to roll up your sleeves and do some work upfront.

Some of our clients have managed to build a portfolio of properties quite rapidly using the BRRR strategy.

4. Location, location, location

You’ve probably heard this before — and for good reason! The right location is key to the success of your investment. Look for areas where:

• There’s strong demand for rentals (close to transport, schools, or major employers).

• Property values are rising, or have good growth potential.

• Local amenities are in place (shops, parks, gyms, etc.).

• There’s potential for regeneration (new homes, jobs, transport links).

If you’re planning on renting your property, check the average rent prices to make sure it’ll give you the return you’re looking for. But remember, you can always improve a property — you can’t change its location!

5. Financing your property investment

You don’t need to have all the cash upfront to invest in property. There are many ways to finance your investment:

Mortgages
The most common way is through a buy-to-let mortgage, but keep in mind this works differently than a regular mortgage. Lenders will want to know the rental income potential and how the property will perform financially.

Alternative Funding
If you want to explore options beyond a mortgage, you can consider crowdfunding, peer-to-peer lending, or even borrowing from friends or family where you can offer them a return on investment that goes beyond the interest they can earn from savings accounts.

Budgeting for Extras
Don’t forget the additional costs like stamp duty, legal fees, and surveys. It’s also smart to plan for unexpected costs like repairs or gaps in rental income. These extras can add up, so make sure you budget for them from the start!

6. Understanding property yields

If you’re looking for income from your investment, yield is a key term to understand. Simply put, it’s the return you make from renting out a property. You can calculate it like this:

Gross Yield = (Annual Rent ÷ Purchase Price) × 100

For example, if a property costs £100,000 and the annual rent is £6,000, your gross yield would be 6%.

This helps you compare different investment opportunities and assess whether a property is a good deal based on how much income it generates.

7. Get the right advice

Property investing is a big commitment, and it’s important to get advice from professionals who can help you along the way. This could include mortgage brokers, accountants, solicitors and build teams.

When it comes to finding property investments, working with a fully compliant portfolio builder can go a long way to ensure that you are making the right decision on a property. Any worth their salt should be providing you with a compehensive analysis when presenting you with an opportunity;

• A full numbers analysis where you should understand how much you need to invest, all associated costs, cost of refurbishment, return on investment and rental yield

• A full location analysis, whereby you understand the area dynamics including tenant demographic analysis, resale analysis, the local job market, transport links, any regeneration planned, crime rates, quality of schools, etc

• A full comparables analysis; what have other properties close by sold for, or on the market for, how long has it taken them to be sold, what is the rental in the area.

Unless you fully understand these parameters, never invest in a property that has been presented to you from a property sourcer.

Additionally, there are loads of free resources—books, blogs, podcasts, and property meet-ups—that can give you valuable insights. Don’t be afraid to ask questions and seek advice.

8. Diversify your portfolio

Diversification is key to reducing risk and increasing your chances of success. Instead of putting all your eggs in one basket, think about:

• Investing in different types of properties (residential, commercial, etc.).

• Mixing strategies (e.g., buy-to-let and buy-to-sell).

• Spreading your investments across different locations.

Diversifying your portfolio helps ensure that if one investment doesn’t perform as expected, others will balance it out.

Final thoughts: Take it one step at a time

Property investment doesn’t have to be daunting. By starting with a clear plan, understanding your goals, and getting the right advice, you can take small, manageable steps towards building your portfolio.

Remember, property investment is a journey. You don’t need to rush it—take the time to learn, explore different strategies, and make informed decisions. The more you educate yourself and build a network of experts, the smoother your journey will be.

If you ‘re thinking of starting your property investment journey, why not schedule a call with us to discuss how we can help you make a plan to invest in smart property opportunities.