As the average rent in Northern Ireland has crossed £1,000 per month for the first time, I've been reflecting on whether NI remains a good place for property investors.
I have been arranging mortgages since 2018 and investing in property since 2021. In that time, there have been positives, such as rising property values and rental income, and negatives, including higher mortgage interest rates, additional costs and increased legislation.
For me, I still plan to buy and invest further in the future. Although I have considered investing on the mainland UK and even abroad, I have, for now, decided against it. I still believe that Northern Ireland offers great value for money in the property market and, while we may not have as many lenders as on the mainland, we have enough here to help most investors.
On the subject of interest rates, around five years ago, rates were sitting at around 2%, whereas today they are closer to 5%. I don't believe that should put anyone off investing. There's a phrase I keep coming back to: "time in the market is better than timing the market." It's a phrase associated with stock market investing, but I think it applies equally well to property. If you're investing over a 20+ year horizon, there will be periods of high costs and low costs, and you have to be prepared to ride those out to be a successful long-term investor.
For anyone considering getting into property investment, the first thing I'd encourage you to do is get clear on your long-term goals. Is it to increase your income, leave your job, build something to pass on to your children, or something else? And how hands-on do you want to be? The answers to those questions will help determine the right strategy for you.
There are a variety of property types, from residential to commercial, and a range of strategies, including Buy to Let, short-term lets, HMOs, flips and others. There is no single right answer; it's about finding the option that best suits your circumstances.
To get into property investment, you'll typically need a minimum 25% deposit. For some, that can feel like a significant hurdle, but it's worth knowing that you can partner with up to three other people to purchase together, which can speed up your path to getting started.
While I believe that starting sooner is generally better, probably the most important thing you can do first is speak with the right professionals, to make sure you fully understand what you're getting into. Key questions to explore include: is it better to buy in your personal name or through a limited company? Is it better to self-manage the property or use a letting agent? What taxes will you be liable for? Can you get finance, and what will it cost?
Many people I've worked with have moved too quickly and made mistakes that cost them thousands of pounds. My strong advice is to build a team around you, accountants, solicitors, letting agents and mortgage brokers who all know and specialise in the Buy to Let world.
