Tips For Buy To Let Investors
Buy to let investment is an attractive option for many people
. Rates are low and people have lost faith in the stock market. However, rates wont stay low forever but people are currently not being able to see past low house prices, rising rents and great mortgage deals.But beware, many investors who bought in the boom struggled as mortgage rates rose before the base rate was slashed to 0.5 per cent - and one day interest.
If you are planning to invest, there are several things you need to know to ensure that you make the most out of your investment. There arent any guarantees, but there are things you can do to safeguard your investment and ensure that you dont lose money in the long run. We can learn lessons of the past more so now than at any other time.
1. Research the market
Make sure you know the risks, and know the specific market in which you want to invest. Talk to a mentor or a property coach who can give you tips and advice and guide you in the right direction. Often mentors will help you see things differently, and enable you to assess risks you wouldnt otherwise have been able to see.
2. Choose a good area
A good area means somewhere that you people want and need to live. Is there special appeal, are there local businesses, is it a hub for transport, are there good schools and amenities? Talk to a professional to help you undertake thorough due diligence.
3. Do the sums
Make sure you write down all the costs and the rent you should get. Does the rental yield stack up? Buy to let lenders want to cover 125% of the mortgage repayments. Make sure you allow funds for void periods, repairs and also a rise in interest rates.
4. Shop around
Talk to a whole of market mortgage broker to ensure you get the best deal, the best rates and a suitable deal for your specific circumstances.
5. Think about your audience
Instead of imagining whether you would like to live in your investment property, make sure you think about the needs of your tenant. Are they professionals, students, families or single professionals?
7. Consider looking further afield
Rather than looking solely at properties near where you live you might need to look further afield to reach your ideal audience and rental yield.
8. Haggle over price
You are essentially seen as a first time buyer in that you dont have a chain, therefore you are in a good position to haggle. You present less risk of the deal falling through.
The critical point really is to ensure you have done your research, make sure you are going to purchase an investment property at the right price and that you will generate the cashflow you expect, and not be using over inflated cashflow projections. In order to ensure you have this knowledge it is essential to do your research of the area you intend to invest in, and not simply take someone else's view that a particular opportunity is a good investment opportunity.
Whilst the article makes the point that where you live might not be the right investment area, there is likely to be a good investment area within a reasonable commuting distance. Whilst you may be able to get an agent to look after it for you, it is still your investment and therefore important that you keep an occasional eye on it. There is also the consideration that if something does go badly wrong and the agent can't or won't deal with that situation for you, then you may need to be able to deal with it yourself, and this can be challenging if your investment property is a considerable distance from where you live.
Final tip - if you are going to invest your hard earned cash, property has historically proven that it is a good investment, and with the right information you can achieve considerable success, therefore it is worth investing in getting a property mentor who has the experience of investing and can help you look at what's right for you, and guide you through the process and the investing jargon.
by: Susan Alexander What An Outsourced Payroll Can Offer To Your Firm A Blessing - Is It The Kind But Proud Heart Or Perhaps Cash That Can Pay For Everything Online Shopping On Your Fingertips Shopping For Aldo Accessories Online In Dubai Real Total Curve Review - You Need To Read Before You Buy Strike Online Shopping Store With Psd To X-cart Template Online Uae Shopping The Value Of Properly Replying To "we Buy Houses In Baltimore" Shopping Cart Solutions For Online Stores Why To Buy Hp Laptops Pensou Flores E Bouquets? Conhea Shopping Das Flores Fast Payday Pounds For You How To Read A Man Review - Should You Buy It