Thinking of quitting your full-time job and moving into the property development trade? The buy-to-let market is currently booming, and lots of people are now making their money from buying cheap, rundown houses and turning them into attractive rental real estate. Sounds like this could be the life for you? Make sure you know about all these dos and don’ts if you are a first timer…
Don’t Buy When Building Is Cheaper
Most people buy to rent, but a small group of people build to rent instead. Even though this can often take longer to get the property ready to rent out and take up a lot of time, you might find that this is cheaper on the whole. That’s because property prices are sky high right now, but building a new property is still quite reasonable when it comes to costs. If you want to make your new build really attractive to renters, look for a sustainable home builder who can help you make an eco-friendly home. Lots of people are now worried about sustainability when they look for a home to rent.
Don’t Design For You
You won’t be the ones living in the home once it is finished, so you shouldn’t design the property to your own tastes. This is especially important if you have quite a quirky and eclectic style of interior design! Instead, keep things neutral so that the interiors will appeal to a wide bunch of people. That way, you are very likely to find someone to rent the place once it is all ready.
Do Invest In Top Quality
Don’t worry about spending quite a lot to make sure that the property is finished to the best possible quality. As buying to let is an investment, you will find that putting in the most money will bring you higher returns. That’s because a house or apartment that is expertly designed and decorated will attract some high-end tenants. And you will be able to charge more for the rent!
Do Have A Backup Plan
Buying to rent doesn’t always go to plan, so you need to have a plan B under your sleeve that you are able to pull out at any moment. Most people do up a home while they are still working so that they have a regular income to fall back on if their home renovation plans don’t work out. Continuing to work is also a good idea right up until you find a tenant. Sometimes, it can take quite a while for the right tenant to come along. During this period, you won’t be paid any rent, and the property won’t make any money, so be sure to have a backup plan, such as sticking in work a bit longer.
Still interested in buying to rent? You should be – it’s such a rewarding investment that can make you a tidy sum of money! Just make sure you remember all these dos and don’ts so that your project is more likely to be a success.
