Buying-To-Let has recently been slowed down by a recession that squeezed mortgage deals and discouraged housing investment.
Now, a reviving market is generating more attractive mortgages, stimulating property prices and generally raising rent levels again, says Dorian Gonslaves, Chief Executive Officer of one of the UK’s leading residential lettings specialists, Belvoir.
“Like most things, when you’re Buying-To-Let you need to do it right. When a considerable amount of your own money is involved, it becomes even more critical!”
That’s why Belvoir has prepared a definitive checklist for anyone looking into Buying-To-Let. And with an Office in the Jewellery Quarter managed by Major Mahil, the expertise needed in seeing if it is the right route for you is only a phone call away!
The Buying-To-Let Checklist
- Research your market. Look into the area, the people you are looking to rent to, the available properties in your market, the benefits and risks. Also be sure to keep up with the letting industry news!
- Choose your preferred tenant type. Are you looking to rent to Students? Young professionals? Families? This is an important decision!
- Find the right property that will appeal to them – houses, flats, older properties, newer builds? Students may not need anything particularly stylish but a young professional might.
- Pick the right area where they want to live – parents may want to be close to schools and shops; wage earners need to commute to work students have to be near to their college or university. Look outside your own area if necessary.
- If local crime statistics are available, take a look and bear them in mind.
- Study the condition of any property you are interested in – from roof, guttering and windows on the outside to condensation, leaks and electrical wiring on the inside. Be conscious of fire risks.
- Check whether extensions or conversions have met planning permission or building regulations.
- Don’t accept the first mortgage offer you get. Shop around. Gather information. Comparisons are key!
- Get the maths right – your investment might give a better return in some other way. How much is the right property going to cost? Is
the rent you expect to get enough to cover the mortgage and give a profitable return? Does the potential capital growth add up to a good investment?
- Talk to an independent lettings agent before you buy. Most mistakes involve either wrong location or wrong price paid for a property.
- Don’t be greedy – Buying-To-Let should be approached as a long-term investment, not a quick fix.
- Be prepared for costs that can upset your calculations – ongoing maintenance, small and major repairs, advertising, future rate rises, mortgage costs, agents fees, tax, falling house values, periods when you can’t find tenants and the property is empty.
- Get the right insurance cover – and that can include insuring yourself against tenants who fail to pay rent.
- If you’re going to manage the let yourself, be prepared to sacrifice your evenings and weekends!
- If this is likely to be more of a drain than you are prepared for, seek out a professional, fully accredited lettings agent who, for a fee, will look after your property, your interests and your tenants on your behalf.
- As well as being completely up to date on legal, legislative and property industry issues, a local agent such as Belvoir will have expert knowledge of the best rates from local electricians, plumbers and so on, which in itself, can be worth a weight in gold. Belvoir local offices do not make any charge for pre-purchase advice, property visits or rental valuations.
“Above all, before you do anything, get professional advice,” says Sinead Kaid, Senior Lettings Consultant at Belvoir! Birmingham Central.
So feel free to give us a call on 0121 212 0122 or visit our Office on Hall Street in the Jewellery Quarter. We’d be more than happy to sit down with you and discuss the potential with Buying-To-Let.
Let us do all the work!