Buy-to-let mortgages
Buy-to- let: The essentials
Before undertaking a buy-to-let investment, please follow this step by step guide
1: Can I afford it?
Can you raise the finance?
Can you get a mortgage?
The first point of contact should be with a specialist Buy-to-let Mortgage Company. They are experts with a wealth of experience and can offer a variety of finance strategies. They can help you put a strategy in place and guide in the right direction from day one to becoming a successful buy-to-let portfolio owner.
We have partnered with The Money Centre who are one of the UK's leading buy-to-let specialists.. Click here now to get an instant online quote.
2: Research the market
Where is there a good rental market?
You can do your own research or speak to a specialist. However if you do your own research here are some useful tips.
Contact your local authority housing department, is there demand for rented accommodation?
Are new companies moving into the area?
Check with estate agents, letting agents and on the internet; what areas get the highest yields?
Is there a student population in the area?
3: Who is the target market?
Who do you want to live in your accommodation?
Do you want students, professionals or families? Make sure the accommodation is tailored to the market. For example there is no point in installing expensive furniture and features for a group of students.
4: Location
This is extremely important. What will your ideal tenant value?
Families will want good schools, young professionals may need to commute to the work so proximity to rail stations and major motorways could be important. Additionally remember the golden rule; do not let your personal taste affect the type of property you buy. Remember property investment is a business, try to make sure you tailor your property for your future tenants and not for your tastes.
It is worth checking out the market in different areas. Use the fish4lettings site to gauge the rental demand and rates being asked.
5: Finance and the future
Property is ideally a long-term investment. Currently the market appears to be slowing down so do not expect to get rich quick over a couple of years.
It is important however to look to the future when you buy a property. For example will there be any new development nearby? Are the transport links being improved? Are new companies moving into the area?
What type of property will be achieve greater returns?
Click here to view a sample investment strategy
Did you know that the average value of UK properties doubles every 10 - 15 years?
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