Top 10 tips for investing in property in 2021

December 12, 2020

Are you planning to invest in property in 2021? Whether you’re a seasoned landlord operating a string of residences or a first-time investor just discovering the potential of the buy-to-let sector, certain core principles apply. 

“The Fabrik Invest team believes wholeheartedly in an educated investment process, so we are delighted to be able to share these top tips for investing in property in 2021. Each and every one of these tips can make a significant difference to how successful an investment can be, so we always advise investors to consider any potential scheme in light of every factor.”

Dale Anderson, Managing Director, Fabrik Invest

Fabrik Invest’s top 10 property investment tips for 2021

1. Do your research 

Location, location, location! Make sure you do your research, focusing on the best locations. These include areas close to a city’s business district and universities, so you can attract the right types of tenants. 

Central locations are often the most sensible in terms of demand, but this needs to be considered on a case-by-case basis. In Manchester, for example, it is Salford Quays that is delivering the ideal blend of location and profitability for investors at present, meaning that developments such as Michigan Towers are of particular interest. 

2. Compare like for like

Consider your options for the local market. Always look for properties where you are paying a reasonable price per sq ft compared to similar buildings in the local area, as well as those where tenant demand is outstripping supply.

3. Think long term

Successful buy-to-let investment is about investing for the long term, not just the immediate future. That means looking at which locations are going to still be popular five or ten years from now. City centres with major regeneration projects have plenty of potential here. 

It’s also important to look at industry expertise. JLL, for example, projects that Birmingham will see the strongest house price and rental value growth in the UK over the next five years. This means that developments such as FiftySixty, in Birminghams’s Jewellery Quarter, deserve particular attention when it comes to their investment potential. 

4. Review the developer’s track record

Make sure you are investing with a credible developer that has a solid track record of delivering quality properties. Ensure that they are not solely relying on investors for funding, i.e. they have commercial lending or are fully funded. This is non-negotiable when it comes to protecting your interests. 

5. Consider payment terms carefully 

Most credible developers will only ask for 30% maximum deposit and then the balance at completion. This means they have their bank funding in place and that the banks have scrutinised them. If you’re being asked for more than 30% before completion, approach the investment with caution. 

6. Choose the right agent 

If you’re investing from overseas or simply a busy professional who’s planning for retirement, chances are you are short on time. This means you need an agent that provides a full management service. Choose the right partner who can negotiate the best deal with the developer, recommend reputable solicitors and financial advisors and offer you an ongoing, long-term support structure and after care service.

7. Don’t shy away from off plan

You can often find reputable developers, choose the best apartments and get the best deals by buying off plan. This allows you to benefit from maximum capital growth and rental yield returns. Some developers offer a rental guarantee period for the initial few years.

8. Understand your yields

Ensure you understand fully how to calculate yields, accounting for any mortgage payments you’ll need to make. Combining record low borrowing rates with high-yielding locations means you can maximise your return on cash invested, with your rental income covering your loan.

Based on the Totally Money UK Buy-to-Let Yield Map 2019/2020, it is the Liverpool L1 postcode area, which covers the central retail area (including Liverpool One), Chinatown and the commercial district, that is providing the best yields in the UK, at 10%. Time, then, for investors to take a close look at The Roscoe, in the heart of the city centre. 

9. Buy with a Ltd company

There can be huge tax benefits to purchasing through a company rather than a personal name. Fabrik Invest can put investors in touch with GetGround, who can assist with this.

10. Buy with your head

There’s no room for sentiment when it comes to property investment. Trust in focused research and sound due diligence so that you can buy with your head every time. 
To find out more, call Fabrik Invest on 020 8175 9891, email enquiries@fabrikpropertygroup.com or visit www.fabrikinvest.com.

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Wayne Venter

International Business Development Manager

Wayne has been in the property industry for over 17 years. He started out selling residential properties in the northern suburbs of Sandton, South Africa, for one of the bigger real estate brands, before moving to a boutique, Johannesburg-based property developer. He worked at a senior level, specialising in residential developments on the north coast of KZN and various other areas of Northern Johannesburg.

Wayne moved to selling luxury, free standing homes and apartments in Sandton, Johannesburg in 2006, having joined the Country’s leading real estate brand and within six months was leading the team. In 2008, he began to focus exclusively on the luxury apartments in central Sandton, priced from approximately R2 million to R60 million. Over the years, he has also added commercial property sales and rentals to his repertoire, as well as building his own investment property portfolio between 2011 and 2018.

By 2018, realising where the South African property market was headed, he sold out of his investment property portfolio to de-risk and went looking for a real estate company to buy into. South Africa’s property market was extremely volatile at that time, so Wayne took the initiative and moved to London to work in property in the UK.

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Edward Snell

Senior Property Consultant

I live in Spanish countryside with my wife and our 11 rescue dogs.

Originally from Bedford, I have two sons, two step children & 6 grandchildren.

I have a keen interest in property investment and over the years have built up a personal portfolio for the purposes of rental income and capital growth.

I have over 20 years’ experience in property investment, both in the UK & overseas.

My other interests include animal welfare, football, motorsports, travel and music

My personality is of an even temperament and I enjoy the cut and thrust of doing deals.
I am happy and successful in what I do & take great pleasure in providing my clients with successful outcomes.

I’m a good team player but work well as an individual.

Daniel Harburn

Property Sales Consultant

Daniel had a passion for property from a young age so he began his working life by undertaking a plumbing apprenticeship for a large well known UK developer to pursue a career in construction. After qualifying he soon realised that building relationships was a preferred skill of his due to his loyal and trusting nature.

From then on Daniel launched his career in sales where he worked his way to to a high performing sales person at a creative media company. Part of Daniels success in accumulating clients over the last 10 years is put down to his diligence in customer experience.

Daniel has a keen interest in golf and also in keeping himself fit which is essential as he and his fiancé have 4 year old twins, Jacob and Sofia who keep them both on their toes.

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