Millenials and Property Investment: Everything You Need to Know
Are you a millennial? Are you thinking of investing in property? Property investment has proven a firm favourite with investors over the years, helping to diversify their portfolios and bring in a regular income for them. But, if you’re thinking of investing in property, there are a few things you need to consider.
Directly or indirectly
First of all, do you want to invest in property directly or indirectly? You could buy a property directly, so it’s wholly owned by you (and the bank), or you could invest in a company, and own a share or interest in it. However, if you do the latter, your investment may be subject to other charges like VAT, although it may well prove more hassle-free.

Commercial or residential
Do you want to invest in a commercial or residential property? If you have a small amount to invest, you’re probably better off looking at residential properties. Remember, also that borrowing money for a commercial property can be more complex.
Freehold or leasehold
Invest in a freehold property, and you’ll own the property and the land, and you’ll have more control over maintenance. Invest in a leasehold property, and you’ll face additional fees such as ground rent, service and maintenance charges, plus you’ll have what could be seen as a depreciating asset. However, conversely, a leasehold property could mean you have less responsibility, and it could also prove more secure — a flat in a development for example, might come with round the clock security for instance.
Hands-on or hands-off
In investing in property, do you want to be hands-on and involved or keep your investment at a distance? Will you be around to see to repairs or would you rather not be involved? You could have an agent manage a letting for you or invest in someone else’s project. If you’re working full time, it might not be possible to be a hands-on landlord. Also, do you want the property to be nearby or not — which brings us to our next point:
Location
You’ve heard it often enough, location, location, location. But it’s true; you need to give careful consideration to the location when buying a property. Do you know an area with a strong rental market? Do you know an area that is on the up? Does it have good public transport links and off street parking?
Also, do you have a feel for the area? Have you looked at the local crime rate for instance? A good point of reference is to pop the postcode of your proposed property into the website www.police.co.uk to see what crimes have been reported in the area. Do have any reason to think that there are any problems affecting the area or that you might have difficulty getting insurance? Use the street name to search on local news sites to see if any issues crop up, like flooding in the area. Also, visit the property at different times of the night and day to see what it’s like. Also, speak to a local insurance agent to get their view.
Turn key?
Another key consideration is, do you want a property in turn key condition that you (or a tenant) could move straight into or would you relish a project? Just consider the realities of a project that needs work, and consider if you have the skills or budget to bring your vision into reality.
Mortgages
You’re probably aware that mortgage lending rules for residential properties have been tightened up in recent years, but from April this year, that will be the case with buy-to-let mortgages too. So it’s time to get your ducks in a row and make sure you have all of the records and paperwork that you’ll need.
So there you have an overview of a few things you need to consider if you’re thinking of investing in property this year.
