The world of buy to let is booming. It is becoming increasingly attractive to invest in properties that will be put onto the rental market. It you are considering this type on investment, then here are few important points to consider before taking those first steps.
You will of course want to seek the advice of a property investment specialist to talk through your options. You will need to look at the property price range that is within your reach and, from there, the best areas where you will get the most bang for your buck, for the type of property that you are looking for.
Perhaps you are wanting to look at alternative ways of finding the cash for the investment like taking the investment from your retirement fund. This method is becoming more popular but you will need to research the self directed ira rules online and with the help of a specialist to ensure that this is a wise choice and something that you are in a position to do.
You will want to be really getting your head around the market of buying to let in the area that you are considering. There are many factors that you will want to be looking into. Firstly you want to be considering the value of the area you are interested in buying in. Has the property market already risen to a peak in that area? Will you be investing in a property at the peak of the market and risk making a loss when you come to sell? These are questions that you need to be asking to make sure you are not buying in the wrong place at the wrong time.
You will want to be looking at the areas that are on the up and have real potential for growth and development. Urbanisation projects, public transport links, employment opportunities and good schools are all key areas that you should be looking into.
Think of the Tenant
Any buy to let investment should have the tenant at the heart of the purchase. You should really be thinking about the type of tenant you want for your property as this will then lead into the different areas that you will be looking into. If you are looking in a quiet, residential area and you feel your target tenants would be a family then you are going to need to be looking into the specifics that you know you’re tenants will be looking for. You will want to make sure that there are good schools in the area and family amenities, such as parks, close by.
If you are are looking for a more urban, city centre location then you are more likely to attract young couples and professionals, and these tenant types come with their own search requirements. You will need to be looking into public transport links, if there are interesting things to do in the local area, such as cinemas, theatres, bars and restaurants. You will also want to consider if the area you are looking at will be attractive to the type of tenant you are looking for.