1. Manage your borrowing – Many investors understand the benefits of investing into property however many also have a gun ho approach. Most work out what they can afford now without thinking 1, 3 or even 10 years down the line. You have to ask yourself can you afford the mortgage if the property is not tenanted and importantly can you afford the mortgage if interest rates rise?
2. Always vet your tenant – Its very exciting getting your very first tenant in your first buy to let. Unfortunately this excitement can soon turn to despair if the tenant becomes unruly, fails to pay the rent or even worse refuses to leave. You can prevent many of these by simply completing thorough checks at the beginning.
3. Keep tabs on income and spending – By keeping thorough records of all incoming and outgoings you can benefit from landlord breaks in regards to tax. This will also help you any disputes you may encounter with what has been paid and what hasn’t.
4. Don’t rely on growth – Many property investors are adamant that their property will grow in price. Whilst this is more than likely the case over the medium to longer term we have also seen in recent years mini crashes. This has to be in every investors mind in case they need a quick sale and could potentially have negative equity.
5. Know your rental market – Are you within the commuter belt, are you letting to students or is your house near great schools for young families. Make sure you know your market and who are your potential tenets. There is no point having a 5 bed family house in an area where the majority of renters want 1-2 bed apartments. Again like any investment, do your research.
If you would like more information about becoming a property investor, or if you are an existing investor and would like further advice about our tips, call us today to speak to one of our helpful consultants. We provide tailor-made solutions based on your requirements, free of charge, to ensure you maximise your property portfolio.
The rental market in the UK has drifted over the last year or so with rents in London actually falling year on year according to research from HomeLet. This has led to rental rates nationwide growing by a modest 0.4% in April of this year. In London this figure in fact dropped by 1.7% month on month from March to April 2017.Read Full Post
Demand for property in the rental market has been questioned of late with the National press suggesting that UK rental property demand had in fact dropped in the last 2 years, with ARLA property mark saying there were just 26 prospective tenants registered per branch in December.Read Full Post
We’ve taken the opportunity to prove why the latter is in fact the reality in 2017, and what buy-to-let can offer investors in comparison to other investment vehicles on the market, such as stocks and investment bonds.Read Full Post