Buy To Let Tips
Easy things to remember:-
1. Independently research the area you are interested in using sources such as the online versions of local newspapers and community websites. Most sellers aren’t going to tell you that they are moving out because of an increase in crime.
2. Letting agents often ‘talk-up’ rental yields, so contact them as a potential tenant looking for a property similar to yours to get the truth.
3. Avoid paying over the odds for a property by using
www.landregistry.gov.uk to get a good idea of the average house prices in the area.
4. Unless you have reliable information, don’t buy in an ‘undiscovered’ area. The area may be undiscovered for a reason.
5. Visit all the estate agents in the area even the ‘grotty’ ones, some investors only speak to those they like the look of and miss out on potential bargains.
6. Don’t just speak to estate agents in the area you have chosen but also those in surrounding areas. (Please explain)
7. To get the highest yield from your investment, shop around for the most competitive mortgage deal.
8. Take the decor into consideration when buying a property. If you don’t honestly have the time, money or skills, it doesn’t pay to buy a bargain property in need of extensive work.
9. Make sure your surveyor does a thorough inspection of the property. As a Landlord, you will be liable for all maintenance so make sure to know about all potential problems.
10. Bargain. Some sellers, especially those with large amounts of equity in their property, are happy to drop the price if it means a quick sale.
Lee Grandin, Managing Director, Landlord Mortgages comments: “Buy-to-let property investment is becoming an important part of an increasing number of consumers’ portfolios. Unfortunately, like many other types of investment, people can make costly mistakes when they first start out due to inexperience.”
It is not only ‘marriages that are made in heaven’ but property investment partnerships too!
Research on over 20,000 landlords compiled by Landlord Mortgages, the UK’s largest specialist buy-to-let broker, shows that over 40% of all property investors purchase and manage their portfolio as a married couple.
The research also revealed that:
· The average married investor has a portfolio containing 4 properties.
· 85% own their own home, which is worth on average £371,000 and 25% own an additional property such as a holiday home.
· In the case of a joint mortgage, the primary applicant is a 44-year-old man and the secondary applicant is a 43-year-old woman.
· The primary applicant earns an average salary of £41,000 per annum (significantly more than the national average of £25,170*). Over 60% of the secondary applicants do not work and those that do earn £32,000.
Landlord Mortgages research also reveals that married buy-to-let investors tend to share the burden of managing the property between them. The wife will often looking after the refurbishment and management of the property and the husband will organise the financing and perform any DIY.
