Top Tips When You Buy To Let
Top Tips When You Buy To Let
When you buy to let you are purchasing a property for the specific purpose of renting it out to a tenant, rather than living in the property yourself. Buying a house is stressful and confusing anyway, but buy-to-let adds a whole list of other things that you need to consider. Follow this short guide to ensure that you are in the know when it comes to buying a property to rent out.
Research Buy To Let Mortgages
If you don’t have the funds to purchase a house outright, then you’ll need to apply for a mortgage. However, this cannot be a regular mortgage; It needs to be a specific buy to let mortgage. There are plenty of companies online, such as Enness Mortgages, that offer these specialised mortgages. Your buy to let mortgage will be determined by the deposit you are willing to put down, and the rental income that you will be receiving from your tenants, as well as your current income.
Choose A Great Location
When choosing your location, you don’t need to go for the cheapest or the most expensive; You need to go for an area in which people would love to live. This could be for a range of different factors. For example, tenants will be willing to pay more if they’re closer to the town centre, or some kind of attraction that your town possesses. If are thinking of renting to a family, then look for properties near schools. It’s also always good to live near somewhere that has easy access to public transport. Having a shop around the corner will also be a blessing for your tenants.
Think Of Your Perfect Tenant
The type of tenant you are looking to find will greatly influence your choice of location, the type of property you are looking for, and even the properties interiors. If you are hoping to attract a family, then you are going to want a property situated close to a school, possibly with three bedrooms, a large kitchen, and a garden. A family are also likely to have their own furniture, so you won’t need to furnish the property, and will only have to do basic decoration, as most families will want to redecorate and put their own stamp on the property anyway. A student or two, on the other hand, is likely to want a home that’s near to your town’s nightlife, and will probably need a fully furnished home.
Look Further Away
Most landlords look to buy property near where they live themselves, often even in the same town. They do this so that they can keep an eye on their property, and are always close by if any problems arise with the house. However, your town might not be the best investment. Instead, consider looking further afield, possibly in bigger cities with universities or areas that seem to be popular for families. Then, rather than having to travel back and forth from the property every time there is an issue, or you want to evaluate the home, pay a letting agent to do that for you.
Renting out a property isn’t easy, but if you do your research and follow these tips, then your journey to getting on the property ladder should be a relatively smooth one.