Buy-to-let property advice and checklist
For investors with surplus funds, buy to let property can be an attractive investment, especially with rent prices increasing due to the lack of people getting mortgages. Buy-to-Let property checklist:
- Money: Ensure you have sufficient funds to keep re-paying the mortgage even if the property is empty, also remember that lending rates change, and if they go up, your monthly repayments will follow.
- Research, research, and guess what, more research. If you are new to the business, you should be going the extra mile to know everything you possible can about the area you are investing in. That includes the neighbourhood, local town, transport links, schools, employment opportunities, crime statistics the list goes on, lucky you can find all types of neighbourhood statistics using HoodPoints.
- Risk: Buy-to-let can make you money, but it can also lose you money. Know your risks and know your limits!
- Location: Make sure you invest in the right location. Take advantage of HoodPoints, and find the best streets, roads and avenues in the area you are looking to invest in.
- Maths: Do your figures, not once, not twice, but thrice. If you have a handy family member, or friend who is good with numbers, run all your figures by them. Two heads are better than one!
- Compare: Shop around for the best mortgage deal. Do not just ask one bank! Read our useful blog post on mortgage advice.
- Remember: This property is not for you. Don’t buy a property just because you like it, you may think a bachelor pad is pretty awesome, but would a young family? Consider the type of people you are trying to “sell” this to.
- Insurance:Get renters insurance. This covers you if your tenant fails to pay rent, or damages your property.
- Negotiate: You are in a good position as you are not in a chain, buyers that are ready to move quick are the type of buyers sellers want.
- Repeat: Again, go through the pro’s and con’s to buying a property to rent out. If its empty for five months of the year, could you handle that?
- Letting your property: Find a fixed fee letting agent, do not pay more than one months rent for their services.