Buy-to-Let – What You Need to Know
26th April 2019
26th April 2019
Every month we are contacted by potential clients asking for advice on a multitude of different property related concerns. We get the usual enquiries about properties for sale and for rent, but also we speak to a number of people who are interested in investment properties.
Of course, it’s a big step to enter in to the world of lettings, but it needn’t be as scary as you think. At the moment it could be a really good time to take your first steps towards becoming a landlord. There are a number of good mortgage deals available and while there are new laws which can make being a landlord slightly more awkward, it’s still a great way to bolster your income or even increase an existing property portfolio.
We’ve put together some top tips for getting into the buy-to-let market. This isn’t an exhaustive list so if you would like to speak to a member of our expert team who will be happy to go through your rental property options, give us a call on 01494 685518 or email us.
Research the Market - Make sure buy-to-let is the investment you want. Your money might be able to perform better elsewhere. Property investing has paid off handsomely for many people but it is essential that you go into it with your eyes wide open, acknowledging the potential advantages and disadvantages.
Choose your location wisely – where do people want to live? Invest there! It is important to match the kind of property you can afford and want to buy with locations people want to live in.
Do your sums – this sounds obvious but make sure you sit down and work out what you want and expect from your investment. There is a tenant fee ban coming in to effect this summer so ensure that any maths take this in to consideration.
Buy-to-let mortgages – your current mortgage provider might be able to offer you a mortgage product which seems attractive, however make sure you shop around. There are many very attractive mortgage products out there if you make the effort to look around. A financial advisor can save you a lot of time and money so please ask one of our team for contact details for recommended advisors.
Your target market – have a think about the type of tenant you want to attract and choose your property and décor based around that. Allow tenants to make decorative improvements to put their mark on the property – these tenants stay for longer and often take better care of their home.
Find a fixer-upper – most people look to invest local to their own home. This isn’t always the best investment. Tired properties or those in need of renovation can be a better deal as they can be spruced up to add value.
Haggle - buy-to-let investor you have the same advantage as a first-time buyer when it comes to negotiating a discount. You represent less of a risk of a sale falling through. Make sure you know the market when negotiating; if homes are taking longer to sell you will be better able to negotiate.
Hands on or off – decide what type of landlord you would like to be. Renting the property out yourself might be more lucrative but be prepared to give up weekends and evenings on viewings, advertising and repairs. We offer a range of letting services including fully managed; ask our lettings department for more details.
Get in Touch
If you would like to speak to a member of our team about your property options or anything in this article, you can give us a call on 01494 680018 or email us. You can also find properties for sale in Beaconsfield on our website and follow us on Facebook, Twitter, Instagram and LinkedIn for all the latest updates.