With the news that the UK will be leaving the EU, many people will be concerned about their investments and retirement funds have already taken a hit. However, real estate continues to be a relatively safe investment, particularly in the UK, it’s simply important that those wanting to invest in real estate make smart decisions.
Here are some ways you can get more bang for your buck in real estate:
Rent for Special Occasions
You may be surprised to hear this, but there are a number of mansions for rent around the United Kingdom. Whether you’re hoping to have a quiet weekend with your family or plan for a big party with friends (or even a wedding), these mansions are a great way to have an affordable weekend away.
Renting for a weekend is also a great way for you to try out different areas and neighborhoods, get an idea of the value of different places and get some ideas for refurbishment and decorating if you’re planning to flip a property.
This seems obvious, but the more you save for your deposit, the better. An extra year of saving can make a huge difference to your deposit and will mean you can take out a smaller mortgage and save yourself thousands of pounds in interest. Open up a high-interest savings account and commit to your goals. If you’re planning to buy with your significant other, make sure you’re both on the same page about these goals and know how you’ll meet them.
This may mean sacrifices such as more nights in with Netflix and a glass of wine and fewer dinners out and nights clubbing, but it will all pay off when you’ve saved a good chunk of money and you’re not so dependent on the economy and interest rates for your mortgage.
If you’re new to real estate, it’s important that you understand all of the jargon. Do some research before you consider buying and understand whether it’s currently a seller’s or buyer’s market in the area you’re interested in. Understand what your tax obligations will be, how much your repayments will be and how your deposit will affect your mortgage. Online tax tools make things like this easy. It’s also important to set clear expectations about how the mortgage will be paid in the event that one person can no longer work, and there are plenty of options for mortgage insurance that will cover this.
Sure, there are plenty of blogs, magazines and books that can give you the basics, but one of the best ways to learn about real estate and make sure that you’re making sound decisions is to get advice from people who have been there. Talk to your family members, friends, and friend’s parents to learn about the mistakes they made and the things they would change if they could do it all again. Other people’s experience can be a great way to prevent yourself from making costly mistakes.