Investing in Buy-to-Let? Make sure you’re considering the following.

 

Buy-to-let is still a solid investment choice for many, especially with recent data revealing a constantly growing rental sector. So what should you be looking out for?

1. Target Tenant Profile

Knowing your target tenant and thinking about the pros and cons of each tenant profile before purchasing is essential. In practice this means, if you are aiming towards students, have you considered the long vacant periods and the short advertising window? Your target tenant will most certainly have an influence on location, type of property, chosen rental agency and rent charged.

https://www.buyassociation.co.uk/2016/11/21/uk-landlord-advice-tenancy-agreement-rental-properties/

2. Location

Research the area keeping your target tenant in mind. Important questions are: How well is the area connected by transport links, what kind of reputation do the local schools and universities have, how far away are any amenities, what about future investment or regeneration plans, is there rental demand? It’s always a good idea to take a walk around the area if you can, as it is the best way to get a real feel for the location.

3. Taxes and Insurances

It’s incredibly important to understand the taxes and insurances associated with buying and tenanting a buy-to-let property. Stamp duty is likely to be one of the big costs when purchasing and once you’ve found tenants there could be income tax to pay on your rental income, along with annual costs like landlord and building insurance.

4. Legal Responsibilities

Your buy-to-let property must be legal and compliant, meaning you will have to obtain several certificates and checks, for example; Gas safety certificate, Energy Performance Certificate and Pact tested electricals (If you are providing them). In case you’re a hands-on landlord and managing your own property there are extra considerations e.g. tenancy deposit protection. If you are purchasing from a developer, chances are, they will provide you with many of these document. Just ask the question.

https://www.buyassociation.co.uk/2016/11/28/invest-britains-hmo-property-sector-three-good-reasons/

5. Benefits and Risks

Buy-to-lets can be a solid long-term investment option with regular income and sizable future gains. However, the unpredictability of the property market and risks such as vacant periods or problem tenants must also be taken into consideration. A solid approach is to select property based on yields, make rental income a big part of your total return and be realistic about costs.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

Investing in Buy-to-Let? Make sure you’re considering the following.

Investing in Buy-to-Let? Make sure you’re considering the following.

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.