Over the past decade, real estate has become one of the most popular investments. Simply because of how much less risky than other investments it is. This means that we are seeing more and more people opting to invest in property. While some choose to invest in run-down places, do them up, and then sell them on for a profit. The investment of choice is most definitely buy-to-let properties.
If you’ve been thinking about investing in property and letting it out, don’t rush into it before reading this. Although buy-to-let is a great source of income, there’s a lot that’s come with it. If you’re well informed about buying property to let out, it can be a fantastic earner. It’s just a case of ensuring that you’ve taken the time to think about every aspect of becoming a landlord.
Do your research
Being a landlord isn’t always easy money. It has the potential to be a fantastic earner, but it’s important to understand that this isn’t always the case. For instance, you may have a couple of months where you’ve got no tenants and no income coming in. If this were to happen, could you afford the mortgage costs?
There’s not only mortgage costs to cover but also insurance – you need to have landlord’s insurance if you’re going to rent the property out. You’ll also be responsible for all upkeep and repair costs. It’s important to work out exactly what you could earn from a property before you invest in it, such as its monthly rental potential. Then compare that amount to the monthly outgoings the property would come with, to see if it’s worth it. There’s no point investing if you won’t be able to make a good income, so it’s wise to do the math beforehand.
Choose a suitable area and local estate agent
A property in a run down area might be super cheap but is it a place that people would want to live? If you want to be a successful landlord, you need to choose a location that people want to live in. You need to find an area that has what people want from a home. Ideally, look for a property that’s close to a range of local amenities, is in a nice area, and has good transport links. It’s also a good idea to invest in property that’s close to where you live, so that if there are any problems you are there to help. You could opt to have your property managed, but that will come with extra costs.
It’s also a good idea to choose a reputable local estate agent to help you with your property search. Arrange a meeting where you go in and have a chat to explain what it is that you’re looking for. It’s important to do this as you can get some great info from Bridgfords, or your local estate agent. Believe it or not, with the help of an experienced agent, you’re twice as likely to find the perfect property.
Shop around for the best mortgage
Last but not least, make sure to shop around for the best mortgage. Don’t make the mistake of going with the first offer that you get, take your time to compare your options. It can be a good idea to talk to an independent broker to get an idea of which mortgage would be best for you. In terms of investment needed and monthly payment amounts.
There you have it, all the ins and outs of buy-to-let property investment that you need to know about.