Ultimately, the property you buy and where, is likely to come down to what is financially viable. As a buy-to-let investor, you will either be relying on:
Capital Growth (medium to long-term increase in the value of the property) or solid
Rental Returns (income generated from the property expressed as a percentage of the property value).
Once you have worked out which of these two investment strategy’s your interested in, register with us your interest and we will arrange a meeting to discuss further your requirements.
A Guide to choosing a Buy-to-Let Property
Taste – Don’t let personal taste influence you. This is an investment, so you want to ensure that the property you buy will appeal to the tenants who rent in that market place.
Numbers – Budget carefully. You must ensure that the income is sufficient to cover your costs and allow for any void period when there is no tenant and no rental income. Your expected rental income must exceed your buy to let mortgage repayments by a certain percentage – for example, your mortgage lender may require a rental income of 130% of your monthly mortgage payments. Your mortgage advisor will provide this information.
Specification – Decorate, fit out and furnish to high quality standards, especially kitchens and bathrooms, to attract the best tenants and let quickly every time. Avoid properties which may require lots of maintenance.
The Location – Check to see if properties in the area you have selected are renting and for what price. If there are a lot of properties on the market in the immediate vicinity, ask yourself why?
Facilities – Local transport links and facilities are crucial as these are important factors for many tenants.
The neighbourhood – Check to see if neighbouring properties are looked after as external appearance often reflects the occupants.
Imagine – Instead of imagining whether you would like to live in your investment property, put yourself in the shoes of your target tenant. Who are they and what do they want? If they are students, it needs to be easy to clean and comfortable but not luxurious. If they are young professionals it should be modern and stylish but not overbearing. If it is a family they will have plenty of their own belongings and need a blank canvas.
Compliance – Don’t use off-the-shelf tenancy agreements from Her Majesty’s Stationary Office or law stationers, or forget to issue the right notices or fail to have a proper inventory and condition report made before a tenant moves in. Leave all documentation to a professional agent.
If you have any further questions or would like to register with our Investment team please contact us by phone on 0754 781 5685 or by contacting us.