The rental market in the UK is absolutely booming and although that isn’t good news for millennials who are struggling to get on the property ladder, it can be good news for you.
Last year in the news, we heard about all of the different charges landlords would soon be facing but many still see buy-to-let an as attractive investment due to low-interest rates and volatile stock markets.
If you have the ability to raise a big enough deposit to purchase a second home or even have the cash to buy outright, purchasing a second property for an additional income is a great idea.
Property has and always will be a great way to keep your money safe and hopefully, it will only increase in value.
When deciding on where or what property you want to buy-to-let there are a few key research areas you need to explore. There are a few key rental areas which are absolutely thriving and will continue to do so, this includes student accommodation, short-term lets for visitors and long-term lets for professionals and families.
These markets will always be popular so they are a worthy investment.
Another area of research is the monthly return you will get from your tenants and if you want to make any adjustments to the property, ie an extra bedroom instead of a living room for a student house.
When deciding what market you want to head into, you should also consider the pros and cons of the different tenants. With students, you will have a number of tenants who will each be responsible for their own rent and deposits. If you’re looking at the holiday rental, short-term lets then you will have to consider the numerous changeovers, the risk to property and uncertain occupancy during weekdays and non-peak seasons.
These are all things you will need to consider before buying-to-let as they will all have an impact on the returns you see.
Before you commit to a buy-to-let, you need to shop around for the best mortgage, don’t just walk into your bank and ask for a mortgage, do your research and shop around.
There are numerous websites which offer up to date buy-to-let mortgage deals and will have live feeds on lenders websites to ensure that you are getting the very best rates.
If you’re still unsure or don’t have a huge budget, to begin with, then have you considered buying a property which needs work doing. As long as it is livable, and you have some time on your hands then you could do the house up yourself and make improvements in order to increase the rental value and thereafter the properties value.
It is also worth noting that if you buy a property to let which is close by, you can keep an eye on it and manage it yourself, avoiding the cost of a letting agent which can be pretty pricey, especially if you have numerous tenants.
Overall, buy to let is a lucrative market, and in the right areas such as a city centre or a student hub, then you will always certainly have tenants.
Investing further into a property is also a good idea, making changes, installing double glazing and adding an extension, will always do you good, not only by increasing the amount of rent you can charge each month but also is the property’s value.
Do you buy-to-let? Let us know your top tips, we’d love to share them with our readers.