Buying A Property In Bournemouth
Belvoir Bournemouth manage hundreds of properties in the local area – so we know what a good investment looks like!
Whether you are new to ‘Buy To Let’ and looking for advice, or a seasoned property investor looking for your next purchase; why not get in touch with us today so we can understand your requirements and answer any questions you may have.
Please find below some useful information for you to consider;
Selecting the right area
A good investment location is somewhere with plenty of employment opportunities, transport links, and good amenities as these factors create housing demand. Places with average house prices but above average rental prices will bring profitable rental yields if you want reliable income.
*Top Tip* Places which are undergoing regeneration will become more desirable and therefore the house prices are likely to rise, leading to long term capital appreciation.
Selecting a property
In order to select the right property, you firstly need to determine your personal investment aims; for example, high yields, capital growth or aiming at a specific tenant market. Do your sums to work out the realistic income forecast against your expenses. Don’t forget to budget for any upfront costs such as finance and refurbishment. For Leasehold purchases, ensure you check the lease length, ground rent and service charge amounts as these can affect your income.
*Top Tip* Before you buy a property, seek advice from a lettings specialist. Belvoir offer a FREE consultation to understand your requirements and also offer an advanced property sourcing service for a small fee.
Refurbishment projects are dependent on the condition of the property you buy. Obviously, there is no need for amendments if you purchase a new-build but sometimes it is worth buying a run-down building at a reasonable price in order to increase its capital value.
*Top Tip* Ensure your figures are realistic! Get multiple quotes for any major works – we are happy to liaise with contractors to allow access for quotes.
Financing your portfolio
There are three standard ways that property investors pay for a property; cash purchase, full repayment mortgage and interest only mortgage. Interest only mortgages are the most popular because they are tax allowable and they also create cash flow which can be used to finance additional properties.
*Top Tip* To get the best mortgage deal, it is worth speaking with a specialist mortgage broker who has access to the whole market. Often they can get you a better rate at the same bank you have been a customer at for years!
Choosing an agent
Don’t just leverage your money – leverage your time too! Choose a proactive agent who has strong local knowledge. Not only will they find you the best investment properties, they will be able to take care of the full management and all the legal work involved with it.
*Top Tip* Choose a fully accredited agent, such as one that is a member of The Safeagent Scheme. This will provide you and your investment added protection.
Finding the right tenants
Once you have found a property and it is ready to let, the hard work doesn’t stop there. Finding the right tenant for your property could make or break the investment. Finding a tenant who is looking to stay long term, has a good employment situation, and who will look after the property is vital.
*Top Tip* Ensure you or your agent has a robust referencing process in place. They should not just check credit history, but also gather references from employers and previous landlords, as well as verifying their recent residence history.
Protecting your investment should be a key consideration. Buildings insurance (and contents if applicable) is different for tenanted properties than for owner-occupiers, so make sure you get the right product. Also consider the effect a tenant not paying rent would have on you – have you considered rent guarantee?
*Top Tip* Always speak to insurers that specialise in landlord products as their products will often be more robust and insure you are fully protected. Belvoir work closely with Let Alliance who specialise in this type of insurance, so it is well worth getting in touch.
All landlords are obligated to ensure their property is fit for living. If you don’t have time to manage a property, responsibilities can be delegated to a letting agent like Belvoir who can take care of everything from lodging tenant deposits to property repairs.
*Top Tip* Landlord responsibilities can change alongside legislation; make sure you keep up-to-date with changes relating to property.
If you want to know more about property investment in Bournemouth, get in touch today; email firstname.lastname@example.org or call 01202 430108