3 Things to Consider Before You Buy to Let
Buying a property to let it out to tenants can give you a substantial second income, or serve as a career in itself, so it's no surprise that increasing numbers of people across the globe are seeing it as the smartest kind of investment.
The UK property market is especially attractive for this kind of purchase at the moment; political uncertainty is keeping property prices down, with the potential for them to rise sharply in future years, and it's also creating a climate where more people are choosing to rent a home rather than buying one.
Find the Right Property At The Right Price
The secret to making a success out of buying to let property is to find a house or flat that is going to provide a good yield year upon year. A careful balancing act is needed because the best results come when you find an affordable property that will still command a good monthly rent.
Don't make the mistake of bidding for the first property you see that catches your eye. A buy to let property is a long term investment, so take your time to look at as many potential properties as you can. In this way, you'll get a good feel for the current market and be able to spot a house or flat that can bring you the best returns.
Will It Be Easy to Find Tenants?
Low wage growth along with economic uncertainty means that many people are finding it hard to get on the property ladder. Therefore, there is an increase in the number of people looking to rent property, but when buying a property to let you still have to consider who your target tenant is and how you're going to attract them.
Young professional couples are a growing market in the property rental sector, so it can make sense to buy property in popular commuting areas or which has easy access to amenities and public transport routes. Alternatively, you could buy a property with the intention of letting it to students, but this can bring a greater need for maintenance and involve more work on the part of the landlord or letting agent.
Keeping Your Overheads Under Control
When considering purchasing a property, you need to make a list of all the necessary work and upgrades that will be required and keep in mind their cost to get an accurate idea of the initial outlay required.
It's also important to keep future overheads under control, such as insurance for your property. When buying house or block of flats insurance, it makes sense to utilise a specialist price comparison site such as www.quotezone.co.uk. They allow you to compare prices from some of the leading property insurers so that you can find the deal that's perfect for you. With just one simple form to fill in, they can save you considerable time as well as money.
When you have great insurance at the right price and a good value property that is in the right place to attract tenants, you have all you need to create a potentially lucrative investment. The time has never been better for those looking to step onto the buy to let ladder.