Five tips for investing in buy-to-let.

Property is all about the numbers, get it right and you could see the value of your investment soar, get it wrong and you could lose out big time. The first question to ask when considering any property investment is what is the rent, how much cash can this property generate on a monthly basis? Knowing this and the approximate purchase price will allow you to calculate the rental yield which is the annual rent ou should then work out your maximum purchase price, you’ll usually need a minimum 25% deposit for a buy-to-let mortgage. Then add the cost of any refurbishment works, legal costs, stamp duty and licensing (where applicable) all these costs need to be factored into the deal. You should then have enough information to make an informed decision.




1. Location Location Location

Call it a cliché, but it’s the one thing you don’t want to get wrong. The location of where you choose to invest will have a massive impact on your success. You want to ensure there‘s a strong rental demand for the type of property you‘re looking to invest as well as a good demand for the type of tenants you’re targeting. Speak to local letting and estate agents as they know what the local market needs and what lets quickly. They’re also a great source of knowledge when it comes to choosing the right areas. There are various websites you can use to check what an area is like in terms of the demographic and crime rates, our personal favourite is Streetcheck.

2. Great transport links and amenities Having access to great transport links and amenities are a great incentive for people to move to an area. If you’re able to find property close to both then you increase your chances of renting your property out faster. Schools, parks and activities for families, universities, bars and shops for students, it’s quite simple really.


3. Town planning and regeneration

Areas for regeneration are great for investment and you can be sure to see your capital growth grow significantly over time. The areas may seem a little unsavory right now, but that’s why they’re undergoing regeneration. You can access this information by typing regeneration then the name of your investment area into Google. The local town plan is also a great resource and this again can be found by typing town plan and the name of your investment area into Google. This information is free and could help you unearth some hidden gems.


4. Keep it local

It’s so easy to be lured by cheaper property prices in the North, but if you plan to buy and self manage your property, you have to ask yourself if you’d be prepared to travel all that way if something goes wrong. The reality of it is that if you live in Essex and buy property in Liverpool, that’s a good 8 hour round trip of your time plus fuel and maybe even a hotel for the night. Ask yourself what’s the longest you’d be willing to drive if you were called out to your property. Strange things can happen in property and the last thing you want is to get called at 3am and have to drive for 4 hours because of a problem at the property. 5. Know your numbers

Property is all about the numbers, get it right and you could see the value of your investment soar, get it wrong and you could lose out big time. The first question to ask when considering any buy-to-let property investment is what is the rent, how much cash can this property generate on a monthly basis? Knowing this and the approximate purchase price will allow you to calculate the yield. You should then work out your maximum purchase price, you’ll usually need a minimum 25% deposit for a buy-to-let mortgage. Then add the cost of any refurbishment works, legal costs, stamp duty and licensing (where applicable) all these costs need to be factored into the deal. You should then have enough information to make an informed decision as to whether or not its right for you. Make decisions quickly, but be smart about it. There are some great tools available online to help you get a good idea of the local market. Rightmove has their sold house price feature and a favorite of mine is home.co.uk which shows you sale and rental prices for properties and it's even broken down into property type.






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