List of real estate investment associations in the UK

In this article, Mortgage Introducer will shed light on everything you need to know about real estate investment associations and firms in the United Kingdom. To give you a background, we will first introduce what associations and firms. We will also list the types of real estate investment firms to help you decide on which type suits your investment goals. 

To our usual readers who are real estate agents and mortgage professionals, this article is part of our client education series. If you have clients who want to know the types of real estate investment firms to invest in, help them by sending this article! 

How to get into real estate investing in the UK 

To start your real estate investment journey, explore the market and choose the type of property suited for you. Afterwards, do your research about the property and look for the following: 

• price 
• location 
• condition 
• debts (if any) 
• claims (if any) 
• rights of way (if any) 

Is real estate a good investment in the UK? 

In the UK, real estate investing has always been an attractive option for people who want to earn more aside from their daily jobs or businesses. The monetary rewards that property investing offer can help elevate one’s financial status. This makes real estate a good investment in the UK. Here are other reasons why: 

• accumulation of cash flow 
• hedge against inflation 
• appreciation of property prices 
• diversification of portfolio 
• taxable income deductions 

Despite these potential benefits to finances, one study found that younger generations are less likely to consider investing in property. 

It is true that newcomers in the real estate investments market are at a higher risk than those who have experience. But this does not mean that property investing is not a lucrative venture for the novice. Being risky does not equate to bad investment. 

How much money do I need to start investing in property in the UK? 

As a metric, real estate investors need to have at least 20% to 25% of the price of the property they are trying to buy. Other mortgage companies require a smaller percentage, and some ask for a bigger one. 

Either way, there is no exact amount; this is because of the numerous financial risks and considerations beyond the initial purchase. 

Like finding the best type of property investment, the amount of money you need to start investing in property in the UK can vary from one investor to another. These key elements also come into play: 

• property prices 
• initial deposit 
• mortgage terms 
• additional costs 

What is a real estate investment association? 

A real estate investment association is an organisation that brings together individuals and companies involved in real estate investment. These associations provide networking opportunities, resources, and support for property investors. They also help their members by sharing knowledge and best practices. 

What does a real estate investment association do? 

The main goal of a real estate investment association is to advocate for the interests of real estate investors and promote the benefits of property investment to a wider audience. 

These property investment associations often host events, seminars, and workshops where members can learn about market trends and investment strategies. They also discuss legal concerns related to property investment.  

What about real estate investment firms? 

Other property investment firms focus on developing real estate. This involves two steps. First, they buy a piece of land. Second, they either construct new buildings or redevelop existing properties to increase their value. 

Aside from direct investing, many real estate investment firms manage funds for individual investors. They pool money from numerous investors to buy larger properties or portfolios of properties. 

This strategy allows individuals to invest in real estate without having to buy and manage properties themselves. Plus, this approach can provide access to opportunities that might be difficult for individual investors to pursue by themselves. Wealth diversification is possible if you invest in real estate investment firms while also managing your own property investments. 

Watch this video to find out why rich people invest in real estate: 

Has this stirred up your interest in property investing? Start your journey by reading this beginner’s guide to real estate investments. 

Five categories of real estate properties 

In the UK, real estate investment firms focus on various categories of real estate: 

1. residential properties 
2. commercial properties 
3. vacant and agricultural lands 
4. industrial real estate 
5. lands for special purposes 

Let us briefly go over each category of real estate properties below: 

1. Residential properties 

Residential properties are those that function as primary residences of the owners. Examples of residential properties include single-family homes and apartment buildings. This type of property is targeted for renters and aspiring homeowners. 

2. Commercial properties 

These properties are those used for commercial purposes such as: 

• office buildings 
• medical centres 
• restaurant locations 
• retail spaces 

Mortgage Introducer has a dedicated page for commercial properties. Feel free to check it out! 

3. Vacant and agricultural lands 

Agricultural lands include undeveloped property used primarily for farming and livestock. Vacant and forest lands also belong in this category. 

4. Industrial real estate 

This involves any property that is used for storage and production like warehouses and heavy manufacturing spaces. 

5. Lands for special purposes 

These are properties created for other functions as opposed to the first four categories. Some examples are public parks, cemeteries, and educational facilities. 

Benefits of investing through a real estate investment firm 

There are many benefits when you invest in property through a real estate investment firm. Check out some of these perks: 

1. passive income 
2. tax benefits 
3. appreciation potential 

To better understand these benefits, let us discuss them a bit more: 

1. Passive income 

Investing in a real estate investment firm will let you earn passive income without the responsibilities of direct property management. This can provide a steady cash flow while you enjoy the freedom to focus on other pursuits or lucrative ventures. 

2. Tax benefits 

Investments from real estate investment firms can also have tax advantages. You can enjoy some deductions for mortgage interest, property depreciation, and other expenses. These benefits can have a positive impact on your expected return on investment (ROI) since they minimise imposed taxes. 

3. Appreciation potential 

As years go by, properties are bound to appreciate their value due to market demand and other factors. Real estate investment firms aim to identify properties with strong appreciation potential. If you put your money in a property investment firm, you can earn profits from capital gains when they sell properties. 

Downsides of investing through real estate investment firms 

If you put your money in real estate investment firms, you should’ve already thought long and hard about the risks. Real estate investments often require a longer time to accumulate income. So, if you want quick gains, other investments might be more suitable. But if you want to invest in these firms, there are ways to mitigate their risks. 

For instance, diversifying your portfolio will reduce the risk of losing all your money. Try investing in stocks or bonds so that you have multiple streams of income. 

Before investing via real estate investment firms, you should consider your risk tolerance. As mentioned above, property investing is risky. Market fluctuations and property management issues within a real estate investment firm can affect your investments. If you can be comfortable and remain calm while facing these potential risks, you have higher chances of succeeding as a real estate investor. 

Should I put my money in real estate investment firms? 

Deciding whether to invest your money in real estate investment firms depends on several factors but there are two vital ones: 

• First, consider your financial goals. If you are looking for long-term growth and passive income, real estate could be a good option.  

• The second one is your financial capacity. A helpful tip when investing not just in real estate is to only use money that you can spare. 

Overall, you should do thorough research before investing in properties. Learn about the UK’s property investment market and the real estate investment association you’re considering. You can look into their track record and management team while analysing their gains with current market conditions. 

Earning extra income through investments in real estate investment firms takes a lot of patience. However, it will all be worth it when you reap the financial rewards.  As the saying goes, good things come to those who wait. 

Would you try investing in any of these real estate investment firms? You can share your insights in the comments section below.