Buy-to-let is one of the most popular areas of property investment. Over 2 million people own property which they let out for income in the UK. Why? Because it can be hugely rewarding!
Here at Nick Fox Property Mentoring, we have a large amount of experience in buy-to-let property investment and have helped mentor many other investors too. Nick Fox has also written a book called ‘The Secrets of Buy To Let Success’ which is a great read if you are thinking about investing in this area.
Here are 7 of our top tips to get you started with buy-to-let property investment:
1. Shop around. Don’t just go for the first property you look at just because it is the quickest and easiest option. Shop around and find the most suitable investment property for your budget and target tenant. Also remember to think with your head, not your heart. This is not a house you are going to live in so don’t let that sway your decision.
2. Remember your target tenant. There are different target tenants, from students to HMO’s to families. Have which one you are targeting in mind when viewing properties and look at the property from their point of view. Think of the things they would want in a property and this will attract them to your property when the time comes to rent it out.
3. Don’t be over ambitious. One area where many people go wrong! You can’t expect to make millions from your first property investment. We recommend you focus on the long term income, rather than the short term, and be realistic with your expectations too to avoid feeling disappointed.
4. Don’t count heavily on property price rises. Property prices go up and down – we all know that! But property prices rising after you’ve bought a property is never guaranteed. Make rental income a big part of your total return, and don’t count heavily on property prices rising.
5. Know the importance of tenant checks and inventories. This is important to remember if you won’t be using a lettings agency to find tenants and screen for you. Doing this yourself cuts costs, but you need to do it right and protect yourself. Doing a very careful and detailed inventory before the tenancy begins will help ensure that tenants can’t dispute valid reasons for deducting money from their deposits when the tenancy comes to an end.
6. Get the best buy-to-let mortgage. Avoid just going into your bank or building society and asking for a mortgage. This probably won’t get you the best deal. Do a bit of research, use a comparison tool or talk to a good independent broker – a bit of work now will help you save money in the long run!
7. Get your investment property for the best price. Obvious yes, but you’d be surprised how many people don’t negotiate heavily enough. Buy-to-let investors are chain free, use this to your advantage! Push that you will make the transaction as swift and smooth as possible too as this may help you get a discount.
We hope you find these tips useful as you build your buy-to-let portfolio!
Here at Nick Fox Property Mentoring, we offer a variety of training resources and mentoring programs to guide you on your buy-to-let journey. Do get in touch with us here if you’d like to find out more about how we can help you.
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