What you need to know when investing in a buy-to-let property
Investing in a buy-to-let property is a dream that many of us will have at one point or another.
Property has always been a dependable investment option, with successful landlords able to set up their rentals to run like clockwork whilst benefitting from an additional source of income.
Before considering your first step, there are some key considerations to be aware of.
It won’t happen overnight
As much as we would like to say otherwise, having a buy-to-let property doesn’t just happen overnight.
Just like starting a new business venture, there are rules and regulations you need to comply with to protect yourself and your property.
Whilst some of these components can take time to understand and navigate, lettings agents like ourselves are fully equipped to guide you through all of the requirements.
Know the area you’re planning to invest in
It’s important to do your research on the area before signing on the dotted line, such as speaking to local agents about seasonal trends and rental yield opportunities.
Is it a hotspot for rental demand? Are there any attractive amenities, universities or transport links nearby that would appeal to tenants?
Ensure you can afford a buy-to-let deposit
Whilst a standard home can be secured with as little as 5% of the price of the property, a buy-to-let investment is usually much higher.
The average deposit is 25% for a buy-to-let mortgage.
It’s also likely that your income will be evaluated, as you need to be earning at least £25,000 a year for most lenders.
Think about your target tenant
It’s important to put yourself in the shoes of a tenant and consider what they would want from a property.
Being a flexible landlord is key to ensure that tenants stay for longer, which is always great news for a landlord as you can minimise on void periods and secure your rental income.
When you have your buy-to-let property ready to market, it is a good idea to position your home based on the type of tenant you’re targeting, such as using the right communication methods to reach them.
For guidance on how to start your buy-to-let journey, get in touch with our experienced team.
This article was originally published by BriefYourMarket and is reproduced here with their permission.
Help us make a difference to those in need this Christmas
Donations for our local food banks are being gratefully received at your local Pygott & Crone branch
Is home staging worth it?
Home staging is a specialised skill which involves creating the perfect atmosphere in your home using furniture and accessories, plants and lighting, to garner buyer interest for your property and sell it faster, for the best price.
Winterproof your home with these tips
As autumn leaves us and dark evenings approach, now is the best time to start preparing your home for the cold months ahead.
One in three properties receive an offer one hour after viewing
The housing market once again exceeds expectations after a poor reception from the chancellor’s mini-budget and regular talk of a possible slowdown, as current research suggests that in 2022, almost a third (31%) of properties are now receiving offers within an hour, compared to a mere 7% in 2018.