Alex Johnson, Valuer and Negotiator at Belvoir Peterborough highlights what to consider when looking for a buy to let property in Peterborough
If you are looking for a buy to let property in Peterborough, particularly if it is your first buy to let purchase, there are some things you will need to consider. With many years working with landlords managing rental properties, and giving buy to let advice to landlords, we are well placed to help you purchase your investment property.
Location, location, location
It is important to do some research prior to purchasing a property to let, particularly if you are unfamiliar with the area. Speak to local contacts, and a local agent, such as Belvoir Peterborough about there the most popular areas for rental are, which attract the best tenants.
Consider the rental income you will achieve against the property price to ensure you get a reasonable profit, that also allows for interest rates to increase slightly. Belvoir Peterborough provide investor information on property details showing the monthly rent and the annual profit after costs to help investors make informed choices about viewing properties. Our trained Buy to Let advisers are always happy to help provide further advice on purchasing a property to let.
New versus old
There are advantages and disadvantages on both sides. Clearly a new, modern and low maintenance property is attractive to tenants and reduces the amount of money a landlord would need to spend on maintenance. There is also the security of an NHBC certificate or equivalent. Potential investors may consider purchasing a more established property, and even a property with a tenant in residence which means you would receive rent from day one. A property with character may be more expensive, and offer slightly lower profit, but in the longer term may experience higher capital growth.
Investing in a property to let, for the majority of people is to achieve security and growth for their money. Therefore the decision about investing is going to be based on affordability, the mortgage products on offer and the rent.
When considering the purchase you will need to consider all the costs of purchasing including the house price, leasehold/management charges, deposit, mortgage costs, survey costs, solicitors fees, etc. In addition to this you will need to consider the costs of renting the property such as finding a tenant, management costs, insurance costs, safety testing and maintenance.
Belvoir are more than happy to help work through a budget for properties you are looking to purchase, to help you make and informed choice. For the properties we advertise for sale, we calculate the investment required initially, and on an ongoing basis, to work out the return on capital employed and are happy to talk through this in detail with potential investors.
Houses of multiple occupancy (HMO’s)
A more experienced landlord may consider a house of multiple occupancy. The costs are likely to be slightly higher with ongoing cleaning ,maintenance, utilities costs and tenant referencing, but the yield is often higher than if the house was a traditional rental.
Belvoir Sales are delighted to offer properties for sale and rental in Peterborough and Cambridge. Please call Alex or Lottie today 01733 511099 to find out more about our investment properties, or if you are a landlord looking to sell you property on.