Bricks & Mortar

March 12th 2014
By: Melanie Hollidge
Bricks & Mortar

If you’re looking for a long term investment and have money to invest in bricks and mortar then Buy To Let is a good alternative to shares or cash.  The option of buy to let can offer a regular income investment during a time of low interest rates and stock market instability.

If you are new to investing in property this year, or would like to improve your income on your existing buy to let, it’s important to do it right.  We’ve put together a list of our top tips to help you succeed with your property investment.

Do your research about the risks as well as the benefits – talk to us about the investment you plan to make and the potential income you could earn.  Think about the length of time you plan to invest your money for – if it’s a long term or short term investment.  Make sure the numbers add up – can you afford for the property to sit empty for a couple of months?  Unless you are buying a property outright, allow for the mortgage interest rate to fluctuate. Don’t forget about tax, maintenance and any additional charges you might incur, these will all eat into your ‘profit’.

Find out about your area – choose a place where people want to live.  If you’re buying a family home, good schools and facilities for families will be important.  If it’s an apartment or smaller home then transport links might be more of a priority.  Put yourself in the shoes of your anticipated tenant – students might prefer it to be easy to clean; young professionals like modern and stylish, whilst families will need room for their belongings. If tenants are able to make the property feel like their own, they are likely to stay longer.

If you have the time or money to do up a property that needs renovating, you may be able to boost the value of your investment.  Remember to ensure the price allows you to refurbish to a good standard and still make some profit.  As you won’t be living in the property then you’re likely to be buying without a chain and might be able to negotiate a discount.

Once you have bought your property, you’ll need to decide if you want to use a managing agent to find you a tenant and manage the property on your behalf or just find you a tenant.  A managing agent will be able to arrange for rent to be collected as well as offering support when things go wrong with trusted tradesmen at their disposal.  Why not call Goodfellows for advice on buying a property and talk about the service offered as a managing agent.