The 'buy to let' market is incredibly strong at the moment.
Providing you do the right things then you could make a rather decent return on
your investment. In this post I want to share five tips that will hopefully make
your investment that little bit easier.
1.
Location: The location of the property is
EVERYTHING when it comes to buy-to-let. People do not want to live in a 'poor'
area. They want to live somewhere that is close to everything that they need.
This means schools, hospitals (in some situations), shopping areas, transport
connections, open spaces etc. The better the area, the higher the price you can
command, the larger your target market is going to be. You need to remember
that tenants can leave on short notice (sometimes as little as a month) You
obviously are going to want to fill up that property as quickly as you can so
you do not have to absorb the costs for too long. The location is what is going
to sell that property. Get it right to begin with and your job as a property
investor is going to be a whole lot easier.
2.
Numbers: There seems to be a lack of 'number
crunching' by many new investors. This is something that has always surprised
me. After all, if you are going to invest in a property then you obviously want
to make profit, right? Well, it is time to whip that calculator out! You are
going to want to look into the price of the property (obviously), the amount
that you are borrowing to cover the purchase price, and what the standard
rental income for that area is. Generally speaking you are going to want the
rental income to cover at least 125% of the mortgage (lenders will not lend for
any less than this). If it does not then move on and find a different property.
Remember, you are also going to need to think about the times when the property
is not rented. How are you going to cover the mortgage then? How are you going
to cover the cost of repayments on the property?
3.
Quell That Ambition: You are not going to become
rich from rental income (or even selling the property on for that matter).
Those days are over. It is unlikely millionaires will be made in this industry
nowadays. You should not really be focusing on your 'long term' goals when it
comes to property investment. You want to think about how much money you are
going to make NOW. This means the rent you can command on a property now. Do
not even think about selling it on yet. Focus on making small amounts of money
each month. Who knows, maybe it will eventually get to the point where you can
invest in more properties? For now do not think about that. Many investors get
tripped up by their long term aspirations. They really do not think about what
is happening in the market right now. It is those who often make a loss.
4.
Negotiate: You are a buy-to-let investor. It is
unlikely you are going to be part of a chain. Those selling their homes will
love this. It means that the sale will be quite quick. This means you should be
able to 'knock' the price of the property down substantially. This means more
profit in your pocket!
5. Think
about Property Management: Owning a property is a tough job. Not only do you
have to find tenants but you also have to deal with repairs, collect payments,
and a whole host of other things. Sure, this may be 'free' in terms of cash,
but many people find that this is a stressful situation. I really do suggest
that you find a property management service. It will stop you from sending
yourself crazy from the amount of work being a landlord is.
About the company “Passionate with Property”
This Estate Agents was specifically set up to make the selling of your property a joyful experience. How? Well they are on-line which means they charge lower commissions, BUT they have local agents on the ground where you are, who you can speak to 7 days a week, 9am to 9pm. If this sounds like the type of pleasurable experience you want when selling your house, see their website:
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