The most essential decision that any landlord has to make is what property to buy. Any investment of this size needs to be accompanied by researching the targeted area and the availability of finance with agents, financial advisors or even other landlords to ensure you have the right funds and property for your future investment.
With house prices rising again, interest rates remain at record lows, demand for housing continues to grow and buy-to-let investing is flourishing, now is a good time to considering investing in property. So to help you in your search for an investment property, here is a list of things to consider:
- Decide on what your objective is; are you looking for good cash flow? (Receiving rental profit after paying the mortgage), good capital growth? (increase in property value over time) Or even a combination of both?
- Do you have the right finances in place? Some newcomers to buy-to-let may under estimate just how much cash they need to start out with.
- What is the gross rental yield on the property? A good residential rental yield will be anything greater than 6%. Not sure how to calculate rental yield? Here’s how.
- What are the employment prospects like in the area? This is important as people need jobs to pay you rent!
- Is there a good demand for properties in the area? With demand comes a quick let, consider speaking to a local letting agent to get their opinion or watch properties on property portals to see how quickly they become tagged as “let agreed��?.
- What are the local council’s plans for development in the area? This will give you a good indication that the popularity will be increasing which, in turn, creates more demand for property in that area.
In addition to placing your efforts in researching the area and gathering finances, the most effective landlords understand that buy-to-let is much more than just another investment option. It’s important you are interested in dealing with people, bricks and mortar and spreadsheets.
We are a letting agency and property management company with over 25 years of experience in the industry. We employ exceptional, committed individuals who work together as a team to ensure that all our clients are looked after and with many of our staff having personal experience of investment properties, we can confidently let your property and provide an exceptional management service. Please contact us on 01454 316718 for free advice and to find out more information.