Buy-to-let investment remains as one of the most popular ways of investing your money. Indeed it can be a great option for those looking to make a solid yet lucrative investment, however it is extremely important to do things right and ensure that you make the right investment choices for your individual circumstances. If you’re looking to be successful with buy-to-let investment, read on for our handy guide to buying a rental property…
- Research the Market
One of the first steps of buying a rental property is to thoroughly research the market. This means finding out solid data about the market in the place you are looking to invest. How has the market performed in recent times – and where is expected to go in the future? Useful data about property markets around the globe can be gained from property consultants such as Jones Lang LaSalle.
- Decide Where You Are Going to Invest
It is worth considering different places you could invest. The place where you already live isn’t necessarily the best place for buying a rental property. If you do your research then you may very well find that you would be better off investing in another part of town – or even in another country. As a guide, look for up-and-coming areas, where properties may be cheaper to purchase in the current market but have a good chance of increasing in value in the future.
- Take Time To Assess the Suitability of the Property
Successful buy-to-let investing is all about finding a property that will provide you with the maximum return on your investment. This means that you want to find a property that has a high rental yield, as well has having good potential for high capital gains. The ideal property will also have a strong demand on the rental market (it is important to do your research and determine which types of properties are appealing to tenants) – and it will also hopefully require little maintenance in the future.
- Find the Right Mortgage
If you are going to be buying a rental property with a mortgage then it is absolutely essential to do your research and seek out the right mortgage for you. It can be worth seeking out the services of an independent broker. They can tell you what’s available on the market and help you to secure the best deal.
- Get the Best Price
Buying a rental property is all about profit, so it definitely pays to haggle down the price. It is worth remembering that you are in a great position to do this. You are effectively the ‘ideal’ purchaser for the vendor to sell to because you have no property to sell yourself and hence will not start off a ‘chain.’
- Decide How Much Involvement You Want To Have
There is a lot to think about when buying a rental property – and making the purchase is just the beginning. This is why many people choose to invest with professionals such as The First Group. They offer a wide range of different property investment opportunities, and they are there to help you see strong returns from your investments, every step of the way.