When done properly, investing in property can be incredibly rewarding, which is why doing your research before jumping in is highly advisable. It can feel like a daunting and scary topic to get your head around especially with so much regulation and legislation to stay on top of.
Simply put, buy-to-let refers to taking out a specific type of mortgage on a property where you intend to let the property out, and not occupy the property yourself. Letting out this property you, in turn, become a landlord, which comes with responsibilities you need to be aware of.
If you’re thinking about purchasing a property using a buy-to-let mortgage, ask yourself the following questions before moving ahead:
Do you have the time?
You will need to be realistic about how much time you have available in your existing schedule to manage tenancies and consider early on whether or not you will require a lettings agent to help you manage your lets.
Do you have the finance?
You will need to ensure your finances are all in check before looking to purchase property to rent out. This is especially the case if you are looking to obtain a buy-to-let mortgage or other financing options.
Are you interested in yield or capital growth?
Yield or capital growth are the two ways landlords and investors look to increase their return on investment. (ROI)
Where and what to buy…
Buying a property near to where you live versus on the other side of the country are two very different things and need proper consideration. First of all, you will need to consider whether you’re looking for a residential or commercial property. If you’re interested in residential, you will then need to decide if you’re looking for a new build of or off-plan property, a resale property or perhaps even an auction property.
We do hope this has helped you plan on your negotiation tactics. If you have a property to sell and would like to arrange a no obligation Valuation with one of us or would like further information, call us on 01932 22 21 20. Or join the Walton Property Community Group on Facebook or you can subscribe to our YouTube channel for free property advice, local property news and market updates.
If you want to find out the value of your property, you can get a free and instant valuation here.
Article sources: Homeowners Alliance, Rightmove & Land Registry.