The buy-to-let industry has faced a series of setbacks in the last few years. A tax crackdown on property investments alongside a tough tax on landlords’ income has put many off investing in rental property. However, there is still a secure income to be made from BTL, as long as you know what you’re doing.
1. Future-proof your rental income and mortgage calculations
Mortgage rates are currently being offered at record low prices. This is one factor creating new interest in the buy-to-let market. However, these rates won’t last forever. Once the financial markets recover, interest rates will spike and you need to know your investment will stand the strain. When working out how much rental income you’ll receive versus mortgages to pay, always assume a higher interest rate.
2. Do your research
If you like the idea of being a landlord, you’re on your way to an enjoyable investment career. However, in many cases, if you’re only looking for a solid investment, your money could work harder elsewhere. Pay close attention to the extra costs involved in BTL. If you plan on outsourcing all your tasks, from letting to repairs, you could find your capital dwindling.
3. Choose the best property not just any property
This is important when it comes to finding tenants as well as retaining value. There’s no point buying a doer-upper in a less desirable area if the only tenants are going to be unreliable ones. Likewise, when you put your money in bricks and mortar, you need to know its value.
It’s always best to tick every box to ensure the property is sound. Companies such as https://www.samconveyancing.co.uk/conveyancing-solicitors/conveyancing-solicitors-Guildford offer conveyance for the BLT investor. You can also find a range of conveyancing solicitors Guildford based and UK wide. Knowing the property’s condition and history will save you a lot of pain down the line.
4. Don’t be afraid to haggle on price
As a BTL buyer, you have a huge advantage over first-time buyers. Namely, you’re not waiting to sell a property before you buy another. Also, certain homes and apartments may be slower to sell than others, simply because buyers don’t see themselves staying there more than a couple of years. In both these cases, estate agents and sellers will be more open to considering a lower offer.