This is a collaborative post by Rosana Beechum.
There are lots of reasons to get involved with investing. Whether you’re trying to save for a more financially stable future, meet certain financial goals, or simply boost your monthly income, investing is something everyone should try in some shape or form. Whatever you want your first investment to be, whether buy to let property, stocks, or shares, here are some top tips for first-time investors to follow.t>
Top tips for first-time investors
Whether you’re investing in property or stocks, shares, and bonds, it’s important to be selective about the type of investment you make. If you’re looking for a stock to invest in, for instance, research the stock market and try and find opportunities that you feel will bring you the most growth.
In the same way, property investment also requires a lot of research before you choose the area to invest in or the type of property type you want to buy. Certain UK cities and regions offer better prospects for property investors, so it’s vital to explore your options before going ahead with your first property investment.
Some of the cities with the best reputation when it comes to property are Liverpool and Manchester. The north-west property market is the strongest in the UK, with the best rates of house price growth and predictions for even further growth by 2022.
Investors that do their research and decide to invest in these Northern cities will benefit from a lucrative and successful first-time venture. With average rental yields that exceed many other UK cities, an ever-growing demand from students and young professionals, and plenty of potential for strong capital growth, it’s no surprise that so many investors are looking up North for their next venture.
If you do decide to invest in property, it’s also a good idea to research the best type of property to invest in to meet your goals and needs. One of the most popular investment types for first-time investors is student accommodation. These types of properties are usually affordable, in demand, and bring in some high rental yields. RW Invest is a property company that often offers student investment opportunities in prime areas with attractive rental yields.
Other popular property investment types are residential apartments in city center locations. These type of properties are usually snapped up by young professional tenants, and with high demand from these tenant types in many UK cities, you can rest assured that you’ll benefit from a steady stream of demand.
While investing can be incredibly lucrative and rewarding, there can also be a lot of risks involved. Spend some time thinking about how much risk you’re willing to accept in your investment as this can help you find the right path to take. If you don’t have much money to invest and want to ease yourself into your first investment, research the market for lower-risk methods, but always be prepared for some risk.
Before making your first investment, you should also ensure you’re fully equipped with all the right know-how about financial issues that could affect your venture. With property investment, this could mean landlord or stamp duty tax, along with working out whether you need a buy to let mortgage to help you invest.
To get to grips with your finances, it might be worth seeking the help of a financial advisor to give you more confidence in your investment efforts and help everything run smoothly. Once you’ve made an investment, be sure to continue researching the market and looking out for any new changes that could affect you and your investment.