Investing in property has always been viewed as a fantastic way to make money, but with lots of changes occurring in the property market, buy-to-let is much tougher than it once was. But that doesn’t mean you shouldn’t invest. Follow the Forbes Estate Agents dos and don’ts to help navigate the property minefield and make your investment a success.
Do keep an eye on interest rates and shop around
With interest rates forecast to rise slightly in the last part of the year, you could see your profits being eaten up very quickly. To this end you need to shop around and get the best buy-to-let mortgage available to you. It might be tempting to just speak to your current provider but you could be saving thousands by shopping around and moving mortgage providers.
Don’t buy in hotspots
While it’s tempting to buy a property in the most expensive areas in the hope of charging a handsome rent reflective of this hotspot, it’s worth spending time researching up-and-coming areas, as investing in property now could reap great rewards in the not too distance future. Are new transport links being built? Could new restaurants and bars be opening up? Do your homework.
Do understand that cheap is cheap
While it may be tempting to buy somewhere cheap and think you only have to spend a small amount to bring it up to scratch. You can often find that there are big reasons why it’s cheap in the first place and could end up paying out for big improvements before you can allow a new tenant to move in.
Don’t forget extra costs
Remember that additional running costs that come with owning a property. The likes of maintenance, additional mortgage costs, and agent fees should be factored into your return on investment. Once these, costs and tax are considered, you will want the rental income you receive to build up over time and potentially be able to use it as a deposit for further property investments. You may even want to use it to pay off the mortgage at the end of its term before you move on to another property.
Do think about your ideal target tenant
Forget about what it is you’d like from a property and put yourself in the shoes of your target tenant. What are their needs? If you’re hoping to target a family consider great storage and open plan living. Are students the demographic you’re after? Then the property needs to be easy to clean and comfortable but not luxurious. Wanting professionals? The location to transport and places to socialise are key to securing good long term tenants.
Are you currently or are you researching to become a Landlord? Would you like advice and support, we’d love to hear from you. Get in touch with Forbes Estates for all the latest local property news, including by to let investment opportunities, ROI, rental yields and how to attract and reference check the best professional long term tenants.
Call our experienced team on 01257 273324 or drop us an email at info@forbesestates.com.
