Wondering where to relocate to?

Property prices in Yorkshire and the North West could rise the most (by almost 30%) in the next five years according to Savills

If you’re investing…

If you have a nest egg, you might be considering property investment. Buy-to-lets or buying a property to renovate and sell on can give impressive returns, but they can also come with risks and unforeseen expenses.

“The events of the last year have moved the goalposts, especially now people who used to work in city offices every day may be home-working for the foreseeable future. This means a number of new outer-city property hotspots will emerge that offer great investment potential for buy-to-let and capital growth investors and you should carefully research these areas,” says Jennifer Mullocks.

You also need to be aware of potential pitfalls. “With buyto-lets you need to consider the tax implications,” says

Paul Malone. This is especially important given 2021 is the first year in which landlords cannot deduct any mortgage expenses from rental income to reduce their tax bill. Instead, you get a 20% tax credit on mortgage interest payments, but this can still hit higher-rate taxpayers hard. “You should also consider the costs of handing over the day-today management of the property to an agency. If you don’t do this you’ll need to factor in the time needed to deal with tenants calling about broken boilers, etc at all hours,” says Paul.

There’s also the risk that if you struggle to find tenants, you could lose money. If property investment doesn’t feel right for you, consider other options for your nest egg such as shares, bonds or pensions.

Turn the page for advice on calculating moving costs and getting a mortgage