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Top Tips for Buying to Let

August 20th 2013
By: Melanie
Top Tips for Buying to Let

The latest figures released by the CML (Council of Mortgage Lenders) show that the amount of landlords in the UK are on the up so we have put together some top tips for buying to let.

It would be simplistic to see Buying to Let as a quick and easy way to make money, but if managed carefully and professionally it could be a long-term way of growing your finances. If you are thinking of entering the Buy to Let market, and there is every indication that now might be a good time to do it.

1 Work out your budget. In addition to the initial cost of purchase, you need to set aside a sum for necessary works. Your mortgage repayments combined with the price of items such as insurance, council tax, water rates will give an idea of the amount of rent you will need to charge to make the property a profitable investment.

2 Shop around for the best mortgage deal, possibly engage the services of a specialist buy-to-let mortgage broker. There are some great buy-to-let mortgages available.

3 There is a higher demand for property in some areas than in others: make sure your property is situated in the most profitable area, not just somewhere that is convenient for you. At Goodfellows we have a great knowledge of our local area so we will be able to help you to find the best investment property in your area.

4 Identify the type of client, are you looking for young professionals, the family market? Once you have established this you can tailor your property to suit their needs, this could make your property stand out from the others on offer in the same neighbourhood.

5 Make sure you have adequate insurance cover for renting out your home.

6 Make sure you use a registered letting agent to find potential tenants, contracts and the smooth running of your rental property.

If you need more advice about buying or renting out property then pop into your local branch of Goodfellows and we will be happy to give you any help you need to become a landlord.