5 more tips to enjoying a successful buy to let

Buying a property to rent out has recently been subjected to tax restrictions on property purchases and a higher percentage of tax paid on rental income. Although this may make it a lot harder to get into the buy-to-let sector, low interest rates have seen the demand for associated mortgages increasing. However, there are still a lot of aspects to consider.

Image Credit

1.      Investment

If you’re expecting to make your millions overnight from buy-to-let investments, this particular venture is not for you. As a strong, long-term investment, buy-to-let relates to income rather than long-term growth. The key return should be the amount of rent you are going to receive for the property – in other words, the yield you will make.

2.      Renovation

There are plenty of property bargains out there if you are prepared to take on a project. As a straightforward way to achieve an increase in your investment, a property that needs renovation enables you to enter into more effective negotiations than a new build would allow. This option would also allow you to make profit immediately by simply renovating and selling.

Image Credit

3.      Negotiations

If your first buy-to-let property is also the first time you are ever investing, you hold all the cards when it comes to negotiating on the property. You won’t be part of a chain, which appeals greatly to a lot of sellers, and there is nothing wrong about starting with a low bid.

4.       Consider what can go wrong

We’re always encouraged to look on the positive side of every scenario we face, but it’s recommended that you research what could possibly go wrong. Consider the fluctuations in interest rates, which will affect mortgage repayments, and make sure you are well-versed in tax requirements.

5.      What will your role be?

It’s important for you to make a decision on how hands-on you are going to be when renting out a property. Are you going to engage the services of a property agent, or are you going to do it yourself? If doing it yourself, you may want to consider using property inventory software like that at https://inventorybase.co.uk/, which will take the hassle out of the inventory side of renting.

Now that you have done your research and secured your finance, you are ready to start your buy-to-let journey!

Leave a Reply

Your email address will not be published. Required fields are marked *