While buy to let may not be the completely attractive proposition it once was, it remains a popular way to make money and invest in property in the UK. Buy to let can net you a decent return – but only if you get it right. Here are a few things you must do if you are considering a buy to let property or properties.
- Research the Market
Buy to let is not a failsafe way to make money. You need to be aware of the risks as well as the opportunities. It is a substantial financial investment as you will need to commit to a property or property, and you will probably need a mortgage. Make sure that you go into it with your eyes open, knowing all that could go right – and wrong.
- Choose the Best Area
You don’t have to choose the cheapest area or the most expensive, but you do need to choose an area where people actually want to live. Look for a place with good transport links, where there are good schools if you are looking to attract a family to rent your home, and any kind of special appeal to a place. For example, parts of Essex like Brentwood and Braintree have consistently been prime spots for moving into the buy to let market. Most flats to rent in Braintree are snapped up shortly after they are advertised, due to a competitive market and high property prices in the area. Many people choose to invest in property close to where they live, which is a good idea in terms of being able to monitor the property but it may not be the best solution if the area is not too attractive to renters.
- Consider Your Target Tenant
Think carefully about who you want to move into your buy to let property. Then think about what they will expect from a property. For example, students will want something basic and comfortable. Families will be looking for space and the ability to put their mark on a place. Young professionals will look for style but not too much expense.
- Consider Renovating a Property
It can be a good idea to look for properties that need a little work so you can improve the property while also improving its value. You can often get great deals on properties that may be old-fashioned in style or need a little work to fit the amenities renters expect. If you can add value to the property this takes the pressure off securing a better return on your investment.