If you’ve already got one property that you’re letting out and want to add to this business with another, what type of property is best? And how can you make sure you’re making the right investment?
Here are some top tips that should help you locate the perfect buy-to-let investment in no time at all:
1. Research the Market
Whether you’re new to the buy-to-let industry or not, it’s important you do thorough research before your purchase.
Are you going to get the return you’re after by buying a second property? More recently, high-rate savings accounts have been the most lucrative investments – but that’s not taking into account renovation projects that add value to a property.
Nevertheless, it’s important to be aware of the risks and pitfalls of property investment, including changing house prices, mortgage rates, and so on. Talk to people who have already done it and what they’d recommend.
The more research you can do, the better and more secure your investment should be.
2. Looking for Upcoming Areas
When we say ‘upcoming’ this doesn’t necessarily mean areas that are the cheapest or most expensive. Rather, this is all about looking for locations that are going to appeal to tenants.
Where are the best schools? Where do students like to live? Which areas have good transport links?
You need to find a property that’s going to appeal to the market you’re targeting and is one that they can afford.
3. Consider Who Your Ideal Tenant Will Be
Who is the tenant you want your property to appeal to? If it’s families, you’ll probably want to give them a blank canvas so they can put their own stamp on it, while professionals may be looking for something that they can move straight into without having to do anything.
Furthermore, allowing tenants to add pictures, decorate and decide which furniture (if any) they want is hugely appealing as they want to feel at home in this property.
It’s also possible to get Landlord Insurance policies that protect you should your tenant stop paying the rent or damage the property while they’re in it. Having this in place with companies like HomeLet will give you the peace of mind you need.
4. Consider a Different Location or a Property that Needs Work
You may be looking at areas that are close to where you live, as most investors do. However, to expand your portfolio and get the most out of it, you may be better off looking further afield. Towns that appeal to commuters or students are always a great place to start, for instance.
Equally, you may also want to look at properties that require a bit of TLC. You can often negotiate a better deal with these and will, hopefully, make a profit from your rental yield and the increase in the property value because of the renovations you’ve done. Just make sure you’re leaving enough in your budget to carry out the repairs to a good standard while leaving room for that all-important profit.