The short answer
Before buying an investment property, be clear on your purpose, test the numbers, check the location, understand the risks and know your exit. This is general information, not financial advice.
I take a measured, long-term view of property. The mistakes I see most often come from buying with enthusiasm and checking the detail afterwards. These five questions are a sensible place to start.
1. What is this property for?
Rental income, capital growth or a mix of both? Your purpose shapes everything else, from the type of property to the length of time you plan to hold it.
2. Do the numbers still work if things change?
Include purchase costs, maintenance, void periods, insurance and tax. Then test the figures against higher interest rates and lower rent. If the deal only works in the best case, it is too tight.
3. Is the location right for the tenant?
Look at transport, local employment, schools and rental demand. A good investment property is one that people actively want to rent, year after year.
4. What could go wrong, and can I afford it?
Boilers fail, tenants leave and regulations change. Keep a cash reserve and make sure one bad month does not become a crisis.
5. What is my exit?
Know how and when you might sell, and what the property would need to look like to attract a buyer. A clear exit makes every earlier decision easier.
Common questions
Is property a good investment?
It can be, but returns depend on the purchase price, costs, rental demand, finance and timing. Take independent financial and legal advice before committing.
How much deposit do I need for a buy-to-let property in the UK?
Lenders typically ask for a larger deposit on buy-to-let than on a residential purchase, often around 25 per cent, but criteria vary. Speak to a qualified mortgage adviser.