15 Property Investment Tips: Lessons Learnt from Experts (2025)
Looking for advice on investment property? These 15 tips deliver proven strategies from two decades of UK property investing experience. Advice from working on the ground with all types of properties, tenants and investors. Across all property strategies and in different locations across the country.
Based on real-world experience in the UK property market, we've distilled the guidance that both new and experienced property buyers need to know in 2025.
Contents
- Tip 1: Think long term
- Tip 2: Set clear goals
- Tip 3: Consider being a contrarian
- Tip 4: Have a budget
- Tip 5: Location, Location, Location
- Tip 6: Make use of the data
- Tip 7: Buy at the right price
- Tip 8: Do your due diligence
- Tip 9: Have an exit strategy
- Tip 10: Get expert advice on finance
- Tip 11: Get expert advice on tax
- Tip 12: Aim to add value
- Tip 13: Diversify your portfolio
- Tip 14: Regularly reassess your strategy
- Tip 15: Beware of the risks
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by Robert Jones, Founder of Property Investments UK
With nearly two decades in UK property, Rob has been investing in buy-to-let since 2005, and uses property data to develop tools for property market analysis.
Tip 1: Think Long Term
Like most investments, property usually works best when used as a long-term investment.
Don't wait to buy property. Buy property and wait.
Is a common piece of advice given to real estate investors. There is good reason.
Property prices may rise and fall in the short term. But history shows that property prices often rise in the long term, and often above inflation.
So, by following a long-term property investment strategy, like buy-to-let's, holiday lets or purpose built student accommodation, you give yourself time to make a return, both with rental income and capital growth potential.
If you are really considering long term, your property investment strategy should have a plan for a 10-20 year time frame. With many landlords even considering generational strategies. Exceptional wealth has been generated this way for generations for a handful of families, like the Grosvenors.
Tip 2: Set Clear Goals
Think about your reasons for investing in property. Make a plan and set clear real estate goals.
Think about what you want to achieve and what are the best property deals to get you there:
- Are you interested in property to make money now, or build for the future? Are you planning a property pension?
- Do you want/need income monthly or capital growth (or both)?
- Would ‘hands-on’ or ‘hands-off’ property projects suit you better?
- Do you have any contacts or knowledge that can give you an edge in one particular strategy?
- What sort of property projects are you naturally interested in? For example, buy to let, buy to sell, flipping, development etc.? Residential property investment or commercial property investment?
- My advice on investment property, is to focus on what you enjoy. If you find managing large projects and teams stressful than flips and refurbishments are unlikely to be for you. Focus on your natural skills.
Access our selection of exclusive, high-yielding, off-market property deals and a personal consultant to guide you through your options.
Tip 3: Consider being a Contrarian
Iconic stock market investor, Warren Buffett, is reported as saying
Be fearful when others are greedy, and only greedy when others are fearful
A contrarian property investment strategy is to buy property when everyone else is selling. Or considering property strategies that are currently out of favour from the mainstream. If everyone is searching for and buying buy-to-lets, then maybe consider an alternate strategy like holiday lets.
This can be helpful to seek out and buy additional value and finding opportunities that others maybe missing.
This theory has some validity in the property market which is often considered to be cyclical.
Tip 4: Have a Budget
There are handful of golden rules of property investment. Many involve value, price, income, return on investment. These are all achieved with successful budgeting.
Budgeting can help to keep your portfolio on track and help ensure that you achieve your long-term plans.
- Work out how much cash you have to invest – and how much you can sensibly borrow if you are considering financing.
- Estimate purchase costs accurately, including conveyancing, any mortgage broker fees and additional stamp duty tax.
- Estimate refurbishment project costs accurately, including materials, labour costs and contingency budgets.
- Estimate sales costs accurately, including agency selling fees and any capital gains tax (like cgt on buy to let).
- Overestimate your expenses and underestimate your income.
- Have a contingency for unexpected costs. A typical contingency amount is circa 10%.
Tip 5: Location, Location, Location
Location, location, location is an often-repeated mantra in property investment and it is very true. Here’s why:
You can improve a property relatively easily and cheaply. But you cannot improve its location.
Buy the worst property on the best street
Possibly the best piece of property investor advice I have heard.
When looking for the best buy-to-let locations, these are usually locations with good local amenities, good transport links and good proximity to workplaces.
But it's more than that. Each area has it's own unique set of challenges and opportunities. This is why we update our location guides regularly, so you can access the latest property data for the best areas in Manchester or if you were wondering is Birmingham a good place to invest in property?
Tip 6: Make Use of the Data
Understanding the numbers is key to success. Getting a good handle on what current property prices are doing, are rents high or low and giving a strong rental yield?
There are numerous property tools you can use in your search, to help see quickly the property data that matters.
Carrying out thorough due diligence when buying a house can really help you spot good investment opportunities and steer clear of bad ones.
So ensure you:
- Use property market data. There are lots of property market data sources out there that collate and analyse prices and rents.
- Seek out expert property investor advice. Estate and letting agents can advise on asking and selling prices and rents and market trends in their area.
- Do your own research. Use property portals, look at local ads and property listings. Get comfortable with the local market.
Tip 7: Buy at the Right Price
You make your money when you buy
This is a common piece of real estate advice.
A good property investment on paper means nothing if you overpay when buying the asset.
When investing in property, it’s crucial to buy at the right price. The right price to buy property at is below market value or BMV price wherever possible. That is, below the price a property would sell for on the open market. By buying below market value you maximise the chances of making a profit when you resell considerably.
There are a couple of ways to buy below market value that can include 'how' you buy and 'where' you buy.
The 'how' includes negotiating the house price and learning how to negotiate with estate agents.
The 'where' you buy can include buying pre-negotiated opportunities from a property investment company, purchasing at auction, buying property off-plan or buying off-market.
Tip 8: Do your Due Diligence
Carrying out due diligence when buying a house is vital.
Due diligence means doing your own investigations, research and checks. Make sure to verify any information you have been told by the seller or agent. Confirm the local market rents and expectations for what type of tenants your property is likely to appeal to.
Due diligence involves researching both the area and the property itself. Make sure to get multiple quotes and expert advice if you are considering investing in and finding renovation properties.
Speak to the experts and take advice from your mortgage broker, conveyancer and surveyor.
Tip 9: Have an Exit Strategy
Before you put money into any property, decide how you will get it out in due course.
For example, will you sell the property? or are you planning a legacy and to leave it to family?
In what circumstances will your exit strategy come into play?
- Will you exit after a certain number of years?
- Will you exit when you retire (and when will that be)?
- Will you sell when your property reaches a certain value, or when your portfolio is worth a certain amount?
- If you buy-to-let, will you sell if the rent/yield/profits drop to a certain point – should that ever happen?
Most advice on investment property considers the early part of the journey of finding or managing your portfolio. Just as meaningful though is your end goal to help you keep on track and achieve success.
Tip 10: Get Expert Advice on Finance
It sounds simple, but property investor advice doesn't stop at locations and property types.
Finance is such an important part of a portfolio. If you get the wrong product or lender, the cost of finance with higher interest rates, additional entry or exit fees and even broker fees, can add up and make or break the deal.
Of course not every investor uses finance, but if you plan to borrow money to invest in property, please take some time to find the best financial advice you can. Speak with a number of mortgage brokers, not just the banks directly, so you can compare options. A good property investment can be made a great one with the right long-term finance plan.
Financial advisers and mortgage brokers can tell you what is the most suitable type of finance for your property investment project, whether it is a mortgage, bank loan, development loan or bridging finance.
Tip 11: Get Expert Advice on Tax
You can maximise your profits from property investment by investing in the most tax-efficient way.
This includes choosing the right strategy (buying a holiday home as an investment for example has a different tax treatment to buy-to-lets).
Take advice from the best accountant or tax adviser you can find. For example, they can advise you on:
- Is it better to invest through a limited company or in your own name?
- How your pension can be used to invest in property (this can even include commercial property or REITs)
- How to minimise Capital Gains Tax (CGT).
- How to minimise Inheritance Tax (IHT).
Tip 12: Aim to Add Value
There are more ways to earn an income from property than simply rental income and capital growth. Some of the most successful investors I know look to add value to their properties in other ways.
This can include;
- If you have a leasehold apartment look at ways to negotiate a lease extension. Expert advice helplines like the Leasehold Advisory Service can help you.
- Buying a property which requires renovation.
- Making more efficient use of a property, eg. turning a one bedroom apartment in to a two bedroom, or a three-bed house into a four-bed.
- Adding an extension.
- Getting planning permission to split land if you the property sits on a large garden
- Increasing rental yields by changing your buy-to-let house to a holiday let or house of multiple occupation
- Improving your gains by purchasing at a discount. Look for opportunities that provide a discount for buying multiple units, purchasing quickly with cash or simply negotiate the best possible price.
Tip 13: Diversify Your Portfolio
The main advantage of diversifying your property investment portfolio is that if one type of property investment performs poorly, if you have others in your portfolio, these can succeed and provide a balance.
So, overall, you will still make a profit. This can include
- Buying a property that generates a strong income stream but has less potential for growth, alongside a property that offers a more modest income stream but a high potential for growth.
- Work in buy-to-lets, buy-to-sells, flipping houses and developments.
- Invest in different areas, eg. rural, city centre, suburbs.
- Buy different types of property, eg. residential and commercial, terrace houses, semi-detached houses and flats. All provide different outcomes.
Tip 14: Regularly Reassess your Strategy
Stay flexible.
Like most financial markets and assets, the property market is regularly changing. As old opportunities fade new, exciting ones emerge. What worked yesterday may not work tomorrow and vice versa.
Monitor your portfolio and your projects regularly – at least annually and ideally more often. Decide whether to buy, sell or stick, ie. buy a new property, sell some properties or hold them for now.
Tip 15: Beware of the Risks
Good property investor advice should point out the risks as well as the potential rewards.
Like any kind of investment, property investment involves risks. This can include financial risks like the property losing money, but also the risk and opportunity cost of lost time.
If you buy the wrong property, in the wrong location, with the wrong management company, it can take up a significant amount of your time managing the asset to turn it around.
Even a good property investment can carry an element of risk including:
- Possible legal problems with your property.
- Possible planning problems with your property.
- Possible licensing problems with your rental property.
- You may be thinking, buy to let is it worth it? as you may not be able to let your property, may not achieve your desired rent, or may have tenant problems.
- You may not be able to sell your property when you want to (a property is an illiquid asset) or may not achieve your anticipated selling price.
By being aware of the risks of the specific property, the risks of the local market and by asking yourself,
Where are we in the real estate cycle?
You can minimise risk and thereby aim to maximise your returns.