Landlords have a lot to consider when buying their first buy-to-let property. There are mortgages, rental yields, and the location of properties just to name a few considerations. This blog post will help you navigate these issues so that your first buy-to-let experience is successful!
Find the right buy-to-let property
As a ‘newbie’ to the property market, it’s important that you do not get in over your head. It’s also important that you can achieve success as quickly and painlessly as possible. The most important thing is to find a property that is ideal for the location you’re looking to invest in.
As a general rule of thumb, this will be a property that is in passably good shape, where you don’t have to spend too much money making it fit for tenants.
Buy property in the right location
Before you start your first buy-to-let journey, it’s essential to know where to find the best places to invest in. Your goal is to buy the right property in the right location. If you do this correctly, you’ll be on course for some great returns on your rental property investment.
Typically, this will be in an area where demand for rental properties exists, and where there is good access to public transport links.
Get your finances in order
Making the decision about buying your first buy-to-let property can be an overwhelming process. Truth is, there are many aspects to consider before jumping into the property market but once you get your finances in order it will help make this process easier. For example, you’re going to need to invest in a buy-to-let mortgage in order to cover the cost of your property. You’ll also need the funds for lawyers, contractors and anyone who needs to work on the property to get it ready to let, as well as fees t advertise the property and possible even a letting agent.
Protect yourself legally
Getting into the buy-to-let market involves a lot of research — on things such as what lenders to choose, what mortgage to go for and how much deposit you should have.
You will also need to make sure you are complying with all the legal obligations set out by these organisations.
The more information you know about the legal side of things such as which documents to ask for from your tenancy agreement, what kind of people need to be on your tenancy agreement and, most importantly, how long you can keep these documents before archiving them, the less stressful it will be for you when managing your first buy-to-let property investment. This is why you should seriously consider engaging a lawyer to help you in these matters.
As you can see, buying a property for investment purposes is not as difficult as it may appear. With the right research and advice from this article along with your own common sense, you should be able to find an appropriate buy-to-let property that will provide good returns on your investment while being relatively low risk.