Selecting the Right Buy to Let Investment
As more and more investors flock to the buy to let market it’s becoming more and more difficult to find a bargain. Ten years ago there were thousands of suitable investment properties for the budding landlord to choose from. Nowadays there are very few low cost properties on the market so selecting the right investment vehicle is critical. What should you look for?
Location is still very important. It’s essential to look for a property that is in a good location. Ideally you need somewhere that is close to local transport links as many potential tenants will not own their own car. Other things to consider would be close proximity to places of employment or education, for instance, if you are looking to rent to students you would do well to choose a property that is either in an areas popular with students already or an area that is simply nearby to a university. Look, then, for things like universities and hospitals as nurses and students make excellent long term tenants.
The local rental market is the next thing to consider. It’s hard to stress the absolute importance of research when choosing an investment property. Take a close look at the local rental market, check what similar properties are selling for, check what they receive in rent and look closely at the competition. It’s crucial to get a clear idea of what your return on investment will be.
Next, take a look at the condition of the property. Like most landlords you would probably expect to need to make some changes to a property before you put it on the rental market. That’s understandable, but do not get carried away. Always keep a close eye on your budget and remember that this is a business and not a hobby. Don’t make unnecessary changes that add nothing to the value of the property and beware of larger, structural work. If you need to spend thousands on your property it will massively impact on your return on investment.
Once you’ve selected your property you will need to make sure you are adequately insured. Whether you own just one property or a landlord with a portfolio of let properties, it is fairly simple to get a reasonable quote. You will still need to get this sorted sooner rather than later. Let Property Insurance is available from many high street brokers. This type of insurance will cover you for all landlord related issues and help to ensure a solid future for your investment.
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