Taking that first step on the property ladder is an exciting moment, but it can be a confusing process for first-time buyers. Keep reading to find out the step-by-step process you need before you buy your first home, along with essential tips for first-time buyers in the UK to help you navigate the journey smoothly.

#Step 1: Check Your Mortgage Suitability

The first thing you need to do when buying your first home in the UK is to visit a broker. The broker will type in your details, name, and income and tell you how much of a mortgage you can get. A broker tells you this based on your income, age, and other factors.

Doing this helps you know how much house you can buy in the neighborhood you like.
If you are planning to save a deposit of £30000, the house you will buy should be worth £200000. Your broker can tell if you qualify to get such a mortgage.

Checking your mortgage suitability with your broker is also an opportunity to discover other things impacting your mortgage suitability.

A good broker will tell you if there are things on your file dragging down how much the lender can borrow you to get a mortgage.

#Step 2: Save Up Your Deposit

Once you have checked your mortgage suitability and determined how much you are likely to get, you can start saving up for that deposit and the extras. There is a video on my YouTube channel where I shared tips on how you can save up for a mortgage; you can watch it here.

#Step 3: Get A Mortgage in Principle

Saving up for your deposit and the extras can take a while, but if you have them ready, congratulations!
Once your deposit and extras are ready, contact the broker that checked your suitability so they can check your mortgage in principle. You can also get it online by filling in your principle.

The purpose of this mortgage in principle is to show the agent selling the house that you can get a mortgage in the UK.

Once you get the mortgage in principle, print it out or save it on your system; so that you can present it when you go house-hunting. It smoothens the house hunting process because some agents will ask for it.

#Step 4: Start House Hunting

Once you get your mortgage in principle, the next step is to start house hunting. Look for houses, and go check them out. One way to house hunt is to visit a house agent and ask about the homes they have for sale.

A more effective method is to search online using websites like RightMove and Zoopla. These websites list houses for sale.

As you browse the websites, it is always good to use filters to filter out houses that do not have the criteria you need.

If you want a garden, a 3-bedroom, parking, or a shed house, you can use the filter to select them and remove those you do not want to see. After that, call up the agent to see the houses.

The beauty of house hunting is that you may think you know what you want until you see other options. You might start out thinking of an old house, but change your mind once you’ve visited a few old ones. House hunting helps you determine what you want and to find your dream house.

#Step 5: Make an Offer

Once you have found your dream house, make an offer. When you go house-hunting and find the one you like, be careful not to be effusive in praise for the property.

Do not go talking about how beautiful, perfect and great it is. It may impact your negotiating ability. Manage your emotions.

Listen very well to what the house owners say, ask questions. If you do not ask, you will not find out. Open doors, sit in rooms and look around.

Asking questions will help you find out if they are desperate to sell the house. It will help you know if they are sitting on the fence and not so keen about selling it; this can help your negotiating ability.

It is alright to make an offer slightly lower than what the seller initially says. If the house is being sold for £200000, you can offer to pay £180000 or £190000. They might be able to meet you halfway.

Speak out if you find out that there is work to be done in the house like the boiler needs to be changed or the bathroom needs to be fixed. It may help you to drive down the price a bit lower by letting the seller know you have a lot of repairs to do.

#Step 6: Get a Deal From Your Mortgage Broker

Once your offer is accepted, go back to your mortgage broker to look for a good deal for you. Bearing in mind your mortgage suitability and the mortgage in principle, they can find you a good deal.

The broker will find a deal that allows you to have a convenient monthly payment with good interest. A good deal means you can pay your mortgage over some years that is convenient for you, depending on your age.

There are two kinds of mortgage deals your broker can get for you;
I. Interest-only mortgage: This kind of mortgage allows you to pay just the interest on the loan from the lender. In this case, your monthly payment will be low. An interest-only mortgage will not allow you to pay off the mortgage, only the interest.

II. Principle and interest mortgage: A principle and interest mortgage mean you are not just paying the interest but also paying off a part of the loan.

Your monthly payment will be a little bit higher. The benefit of this is that it allows you to chip away at the loan from the lender. I advise that you go for this mortgage because it allows you to pay off your mortgage.

#Step 7: Hire a Solicitor for Conveyancing

The job of a solicitor is to carry out all the legalities. He handles all the payments you need to make and the legal steps to carry out. The price to carry out conveyancing ranges between £1000 and £2000.

#Step 8: Hire a Surveyor

A surveyor will go into the house and find out if there are things you need to watch out for. They tell you about any electrical issues, leaks, and work you need to do.

If your surveyor says there are a lot of repairs to be done, you can return to the seller to renegotiate your offer.

However, if he comes back with little day-to-day changes, you do not need to renegotiate; factor them in for the future.
Your mortgage lender will also send their surveyor to ensure the house is what you say it is. They will value the house as a lender.

Your surveyor will tell you what they think the house will be worth based on their survey. If your surveyor quotes a figure way higher than the offer, you can also renegotiate the price with the seller

#Step 9: Sit Back and Wait For Them To Do Their Job

At this stage, sit back and allow your team to do their job; they will keep you updated about the fees you need to pay while your lawyer makes the payments for you.

#Step 10: Exchange of Contract

Once your lawyer has made a filing with the council and is happy with the state of the house, he will instruct you to do an exchange of contract. At this point, once you sign, you cannot go back. Going back will attract charges. You may have to pay a hefty fee if you decide not to buy the house anymore.

#Step 11: Inform Your Current Landlord

Contact your landlord to inform them you are moving out soon, especially if your house has a notice period that is quite big.

#Step 12: Get a home insurance

Home insurance is important once contracts have been signed and exchanged. If anything happens to the house at this point, you will be responsible for it.

#Step 13: Completion

The time between the exchange of contract and completion should be short. Tell your seller and lawyer at the beginning of the process that you want a short exchange period.

Six months or one-year duration is too long. A lot can happen in that space, and you will be liable for anything that happens at that time. Invite your lawyer to speed up the process so you can complete it quickly.

Final note..

Once you complete, the house is all yours; you will get the keys and can move in any time you want. If the seller remains there a day or two after completion, it has to be with your permission.

Once you know the completion date, you can book movers to help you move.

I hope you find this post useful on your journey to being a homeowner.

Ronke Odewumi

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Whether you’re relocating for studies or work, there’s no getting around the necessary relocation expenses involved. So what are the financial costs to expect when you move abroad?

How can you prepare financially for a new life in your new country? Keep reading to find out six financial costs to expect when you move abroad.

1. Relocation Cost

It would be best if you first considered the cost of moving yourself, your family, and your belongings to a new country. The cost of relocating is the first cost you must consider before getting to your new country and earning money.

Your relocation cost will come majorly from the money you already have, your savings, and the money you put aside. 

Relocation costs are usually high because you must apply for visas, ship your luggage if you’re coming with family, and pay for your flight ticket. It also includes the cost of health checks. 

Some countries like Canada and the UK require you to carry out health checks like tuberculosis checks and Covid tests before relocating. 

You will need to pay wherever you are because your insurance will likely not cover these things. 

If you are moving to a country that requires a work visa or a work permit, you would have to factor in visa cost. However, you may be lucky to find a new employer that would cover those visa costs. If you are moving with your family, you should prepare for the cost of their visas. 

Some countries will require you to have a certain amount in your account to show that you will not be a burden to the government or system when you arrive in your new home. 

You will pay the visa fees to the embassy or authorities of the new country. 

Cost of Living

 You need to research if you are moving to a more expensive country than the one you are in now and how much it will cost you to get accommodation in the new country. 

Cost of living includes utility bills and whether your employer would pay you monthly, quarterly, or annually.

When you arrive in your new country, where will you live and how much will that cost you? It would help if you also found out what it would cost to rent a one, two, or three-bedroom apartment in different neighborhoods. You can get a flat share if you are a student or alone. 

 For many people moving from Africa to places like the UK, US, or Canada, you will experience a higher cost of living. In addition, the currency exchange may not be favorable because the currency is higher in your new country.

3. Tax

You need to be aware of the taxes in your new country before moving in. For example, you may be moving from a country where you pay just one central tax as an employee or a business owner. 

If your new country is a place like the UK, which is a land of taxes because they have income taxes, cooperation tax, VAT, MOT, and many others, you need to prepare yourself.

And even though these taxes have values, they have their usage because you benefit from one or two things. For instance, you benefit from the council tax by getting your bins carried off and your neighborhood cleaned.

Most taxes are value-adding but do not change the fact that you would pay from your income. Therefore, you must understand the tax system of your new country.

Otherwise, you would create a budget without considering tax. When you eventually pay your tax, you will have less money than you initially thought. 

Find out what tax is, how much you would have after tax, and how frequently you need to pay different taxes.

You cannot escape tax payment because you will owe the government, and not paying some taxes in the UK can send you to jail. So budget them into your income and plan accordingly.

4. Transport

The cost of transportation is a big one in the UK. For example, if you get a job and must commute, you must get from your home to your office daily.

Transport can quickly begin a big chunk of your expense in a country like the UK because you would have to get on trains, buy train tickets, and all that.

Suppose you’re moving to a country where taking a train is not a thing; you will also consider the need to buy a car, fuel it, and get insurance. 

If you are coming in with a partner and your kids, you have to factor in the possibility that they have to go to school daily. So you would drop the kids off at school, bring them back, shop for groceries, and go to work.

5. Visa renewal

 For many people, you need to renew your visa beyond the first visa that gets you into the new country. Visa renewal is a cost you need to bear in mind because it can quickly become overwhelming if you do not plan for it. 

For instance, if a family of four needs to renew their visa, they will spend more. So even if your visa renewal is not due in another three years, plan for it because time flies quickly.

The questions to ask yourself are: what kind of visa renewal do I need to d? When do I need to do it, how much will it cost me, and what are the requirements? How can I meet up, so I do not have to return to my old country? 

6. Black tax

You will likely experience the black tax if you are black or African. The black tax is the cost of supporting and helping your relatives back home. This cost applies if you’re moving from Africa to any western country and have left people at home.  

You will bear in mind that you need to support your aged parents and other relatives back home. I once talked about black tax in a video on my YouTube channel; you can watch it here.

As you relocate to your new country, I wish you all the best and hope you settle in nicely.

If you have already moved to your new country, I shared in a recent post the financial steps and actions you must take to manage your finances as a new immigrant. 

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Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-producing real estate. They offer a way for individual investors to gain exposure to real estate markets without the need to buy property directly. In 2025, the UK REIT market is shaping up as an attractive option, with diverse opportunities in logistics, retail, residential, and more. Before we share Best REITs to invest for in 2025, lets do a recap on what REITs are and how to invest in them.

How REITs Work

REITs pool money from investors to purchase properties or finance developments. They are legally required to distribute at least 90% of their income as dividends, making them an excellent choice for income-focused investors. Many REITs specialize in specific sectors, such as logistics, retail, or healthcare, allowing investors to align their choices with market trends or personal preferences.

Performance and Trends: 2024 vs. 2025

In 2024, REITs faced challenges due to high interest rates and inflation. However, 2025 offers a more favorable outlook as economic conditions stabilize:

• Dividend Yields: REITs like Residential Secure Income and Custodian REIT offer yields above 6%, higher than the FTSE 250 average of ~3%.
• Sector Strengths: Logistics REITs (e.g., Segro, Tritax Big Box) continue to thrive thanks to e-commerce growth, while healthcare REITs like Assura benefit from non-cyclical demand.

Should You Invest in REITs?

REITs provide exposure to the property market without the need for direct ownership, offering liquidity, diversification, and high dividend payouts. They’re particularly attractive for investors seeking stable income streams. However, as with all investments, risks like interest rate fluctuations and market downturns must be considered.

Here are the top 15 REITs and why they stand out.

1. British Land Company (LSE: BLND)

• Focus: Office and retail spaces.
• Why It’s Great: British Land is a stalwart in the REIT sector. It experienced challenges during 2023 due to rising interest rates, but its low share prices in 2024 and strong history suggest it’s positioned for recovery as inflation eases.

2. Segro (LSE: SGRO)

• Focus: Industrial and logistics properties.
• Why It’s Great: Benefiting from the e-commerce boom, Segro has seen demand for warehouses grow steadily. With a dividend yield of around 4%, it remains a reliable income generator.

3. Land Securities Group (LSE: LAND)

• Focus: London-based retail and workspace assets.
• Why It’s Great: The company’s pivot to high-growth areas like mixed-use urban properties and divestment from struggling office spaces make it a solid bet for the future.

4. Urban Logistics (LSE: SHED)

• Focus: Urban warehouses for e-commerce fulfillment.
• Why It’s Great: Strong rental growth (up to 20% in 2023) and high occupancy rates highlight its potential for income and capital appreciation in the booming e-commerce sector.

5. Tritax Big Box (LSE: BBOX)

• Focus: Large logistics warehouses.
• Why It’s Great: With a 5.1% dividend yield, Tritax continues to benefit from the growth in online retail, making it a popular choice for income-focused investors.

6. Custodian REIT (LSE: CREI)

• Focus: Diversified commercial properties.
• Why It’s Great: Custodian REIT’s diversification and strong management have helped it weather market volatility, offering a stable 6.3% dividend yield.

7. Residential Secure Income (LSE: RESI)

• Focus: Affordable housing and retirement rentals.
• Why It’s Great: RESI’s focus on inflation-resistant housing assets and an 8.3% dividend yield make it attractive for income investors.

8. Assura (LSE: AGR)

• Focus: Healthcare properties.
• Why It’s Great: Stable demand for healthcare facilities ensures long-term rental income. Its resilience makes it a defensive play during economic uncertainty.

9. LXI REIT (LSE: LXI)

• Focus: Long-term leases across sectors.
• Why It’s Great: LXI’s inflation-linked leases and a diversified tenant base provide steady returns even during volatile periods.

10. Big Yellow Group (LSE: BYG)

• Focus: Self-storage facilities.
• Why It’s Great: The growing self-storage market and strong demand provide solid revenue growth potential for this REIT.

11. Primary Health Properties (LSE: PHP)

• Focus: Primary care medical facilities.
• Why It’s Great: With healthcare being an essential service, PHP offers steady income with low volatility.

12. Unite Group (LSE: UTG)

• Focus: Student accommodation.
• Why It’s Great: Rising demand for higher education drives long-term growth potential, making Unite an appealing REIT for younger demographic investments.

13. Workspace Group (LSE: WKP)

• Focus: Flexible office spaces.
• Why It’s Great: The shift towards hybrid working is boosting demand for Workspace’s flexible solutions.

14. Supermarket Income REIT (LSE: SUPR)

• Focus: Grocery retail properties.
• Why It’s Great: The essential nature of groceries and inflation-linked rental contracts provide a stable revenue base.

15. Stenprop (LSE: STP)

• Focus: Small industrial properties.
• Why It’s Great: Targeting smaller industrial units, Stenprop benefits from growing demand among SMEs and offers a high yield.

Final Thoughts

The UK REIT market in 2025 provides exciting opportunities across diverse sectors. Whether you’re seeking income, growth, or stability, these 15 REITs offer compelling prospects. Always consider your financial goals and consult with a financial advisor before investing.

For more detailed advice, explore the REITs mentioned above on platforms like Hargreaves Lansdown or Interactive Investor. Happy investing!

The content on ronkeodewumi.com is for informational purposes only and reflects our opinions. It’s not financial advice. Always consult a professional before making investment decisions.

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Imagine owning a piece of a shopping mall, an apartment building, or even a skyscraper without having to buy the whole property yourself. That’s what REITs (Real Estate Investment Trusts) allow you to do. In this post we will share with you the types of REITs, who can buy them and the best REITs to buy from our research.

A REIT is a company that owns, operates, or finances income-generating real estate. By law, REITs must return at least 90% of their taxable income to shareholders in the form of dividends, making them an attractive option for income-seeking investors.

Investing in REITs can be an easy way to add real estate to your portfolio without the headaches of being a landlord.

Types of REITs

There are three main types of REITs, each focusing on different aspects of real estate:

1. Equity REITs
   • These REITs own and manage income-generating properties like apartments, offices, malls, and warehouses.
   • They make money primarily through rental income.
2. Mortgage REITs (mREITs)
   • Instead of owning properties, mortgage REITs invest in mortgages or mortgage-backed securities.
   • Their income comes from interest on these loans, making them more sensitive to interest rates.
3. Hybrid REITs
   • These combine equity and mortgage REITs, giving exposure to both property ownership and mortgage investment.

Who Can Buy a REIT?

Good news: almost anyone can buy REITs!

REITs are traded on stock exchanges, just like regular stocks, which means:

• If you have a brokerage account, you can buy REITs.
• They’re suitable for beginners and experienced investors alike.

Additionally, some REITs are private or non-traded, meaning they’re not available on public exchanges. These are typically reserved for institutional investors or high-net-worth individuals.

What’s Happening With REITs in the Market? (from 2022)

The last couple of years have been a rollercoaster for REITs due to the following reasons:

1. Impact of Rising Interest Rates
   • REITs often borrow money to finance their properties, and higher interest rates increase borrowing costs.
   • Rising rates also make bonds more appealing compared to dividend-paying investments like REITs.
2. Post-Pandemic Recovery
   • Sectors like retail and office REITs faced challenges during the pandemic, but residential and industrial REITs (e.g., warehouses for e-commerce) have shown resilience.
3. Shift in Demand
   • Data center and infrastructure REITs (e.g., cell tower REITs) are gaining popularity as the world becomes more digital.

Despite challenges, REITs remain a reliable choice for income-focused investors, especially through REIT ETFs.

Best REIT ETFs to Consider in 2024

Here are some of the best REIT ETFs for building wealth and earning passive income:

1. Vanguard Real Estate ETF (VNQ)
   • Tracks the performance of the MSCI US Investable Market Real Estate 25/50 Index.
   • Includes residential, industrial, office, and retail REITs.
   • Low expense ratio and broad exposure to the US real estate market.
2. Schwab US REIT ETF (SCHH)
   • Provides exposure to US equity REITs while excluding mortgage REITs.
   • Known for its low costs and solid performance over time.
3. iShares US Real Estate ETF (IYR)
   • Offers exposure to a diversified mix of REITs and real estate management companies.
   • Covers both small and large-cap real estate businesses.
4. Global X SuperDividend REIT ETF (SRET)
   • Focuses on high-dividend REITs globally, making it an income-focused choice.
   • Higher risk due to its emphasis on yield.
5. Real Estate Select Sector SPDR Fund (XLRE)
   • Tracks the real estate sector of the S&P 500 index.
   • Includes some of the largest and most stable REITs.

Why Invest in REIT ETFs?

1. Diversification
   • Real estate often behaves differently from stocks and bonds, adding variety to your portfolio.
2. Steady Income
   • REITs are known for paying consistent dividends, making them a good choice for passive income.
3. Low Entry Cost
   • You don’t need to save millions to invest in property—REIT ETFs make real estate investing accessible.

Key Points Before You Invest

• Understand Your Goals: Are you looking for income, growth, or both?
• Check the Expense Ratio: Low-cost funds like VNQ are generally more appealing.
• Watch Interest Rates: REITs can be sensitive to rate changes.

Explore More

If you’re ready to dive into real estate investing or want to learn more about smart financial strategies, check out our Investment Page for detailed guides and tips. Don’t forget to visit our Homepage to explore a range of resources tailored to help you build wealth and secure your financial future.

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