One of the first and biggest decisions to take when you’re launching out into the world of property investment is what house to buy.
Making the right choice here will stand you in good stead for being able to rent the property out easily, thus ensuring a reliable source of income.
Check out these top tips on choosing the right buy-to-let property:
1. Set a budget
The best way to make sure that you don’t end up over-stretching yourself is to set a realistic budget based on your expected rental income and outgoings – and then stick to it! You might need to provide a deposit for the purchase and there are the usual costs involved in property acquisition, including searches, solicitor’s fees and surveyor’s fees.
2. Remember to be guided by your head not your heart
It can be very easy to view a property and allow your personal preferences to affect your decisions. Bear in mind that you aren’t buying a place in which you’ll make your home. It is an investment for rental purposes, so let that guide your decisions.
3. Factor the buy-to-let mortgage into your calculations
You may well need to provide a deposit of at least 25% in order to secure your mortgage. Ensure the property is worthy of a decent rate of rental income to be able to cover the monthly re-payments.
4. Decide what kind of tenants you want to have
Are you looking to rent out to a family or individuals? This will affect the kind of area you go for and the type of property that you purchase. Families will want to be near to schools. Young professionals will look for a place with good transport links. If you are thinking of using the property as a House of Multiple Occupation (HMO) then the size will be key.
5. Would you buy a newer or older property?
Newer properties tend to have fewer issues with maintenance and can be more attractive to tenants. But older properties often have more character and you might be able to find a bargain if it is need of a little renovation.
We wish you all the best in your 2018 property investment!
If you are looking for further advice on property investment, take a look at the property mentoring services we provide at Nick Fox Property Mentoring here. We offer a range of mentoring packages to suit all needs.
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