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Three Things To Consider Before Purchasing A Buy To Let Property
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Investing in a buy-to-let property is becoming an increasingly popular option for those who have the money to secure a deposit, as the property market stirs back into life.
Like any other investment, buy-to-let comes with a level of risk, but it can also provide some nice returns, so if you’re considering buying a buy-to-let for yourself, we’ve highlighted three of the most important things you’ll want to consider before doing so.

Target Tenant

One of the most important things to think about is who is your perfect tenant? This factor will find up influencing most of your decisions so it’s important to have a good think about it.
Try and put yourselves in the shoes of your tenant, rather than looking at the property from your own viewpoint.
For example, if you’re letting to students, the property needs to be fairly straightforward with more focus on practicality than luxurious extras.
On the other hand, a young couple will be more likely to want something a little more contemporary and luxurious.
Obviously families are going to need a lot more space, which is something else to bear in mind.
Whichever type of tenant you choose to go for, it’s important you leave the property as a relatively blank canvas to allow them to add their own personal touches and make it feel more like home, and hopefully stay on as tenants longer.

Area

When deciding on an area to invest in, don’t just look for the place with the cheapest rates or the one with the richest tenants!
Instead take your target tenant and think about the area that they would be happiest to live in.
Things such as transport links and schools are important considerations, especially if you’re aiming toward families or commuters.
Obviously your own budget is going to be a consideration here, but investing in an area which isn’t suited to your tenants isn’t going to get you very far.
Also think about whether you want to invest in somewhere which is already close to where you live.
This is obviously an advantage as you’ll already have a fairly good grasp of the local market and you’ll also be able to keep a much closer eye on the property, but it does close off a lot of potential properties to you.

Make Sure It’s Affordable

It’s super important that you do the maths and figure out exactly what the costs of your investment will be, and how quickly you’re likely to see a return on it.
Buy-to-let mortgages will usually require a deposit of 25%, and will also typically need your rental income to cover 125% of the repayments.
Also bear in mind that the arrangement fees on buy-to-let mortgages are often higher than on traditional ones.
Feel free to get in touch with one of our experts or check out our buy-to-let mortgage page for more information and help on comparing the market for the best deals when it comes to buy-to-let mortgages.
Also bear in mind maintenance costs, and possible situations if the tenant unexpectedly moves out.
Once you’ve got all the costs added up, figure out how much rent you’ll be charging and weigh it all up to comes to a decision as to whether this investment is worth making.
Above all else, make sure you’ve got the time and motivation to fully look after your tenants as this is the best way to keep everybody happy and maintain a healthy relationship which also hopefully makes you a bit of money!
Bear in mind all of the above info and you should be a better place to determine whether or not investing in a buy-to-let is right for you.

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