Well, it may be a great idea if you read our property investment tips first! This market can be confusing, but I’m going to help you by providing you with some valuable advice.
Tip #1: One of the most important things is to find the right property. That’s right. It may sound obvious, but you would be surprised at how many people don’t take the time to do this…and then suffer the consequences later when you can’t rent it out!
Two-bedroom flats in the city are a good buy-to-let choice because they can be shared by more than one person. However, a three-bedroom terraced house is a great buy-to-let choice because it will often bring you the highest return on your investment in an area filled with students!
Tip #2: Always remember that you are buying buy-to-let property as an investment, NOT as your personal home. This means you shouldn’t look for a home just because you would like to own it yourself or start decorating it in your own personal style. Make your decision a business, rather than personal one so you can maximise your investment returns!
Tip #3: Make sure yourbuy-to-let property is located near a good transportation system! Renters usually place high importance on being able to access motorways or public transportation.
Are you ready for the next of my property investment tips?
Tip #4: Hire a mortgage broker who can help you find the right mortgage. I know how hard it can be to find the best investment option out of all the available buy-to-let mortgage deals so find a professional to help!
Tip #5: Remember to factor in costs such as legal fees, stamp duty, ongoing mortgage costs and decorating expenses. This will help you to establish a realistic budget. Too many investors forget about these expenses, and they don’t put money aside to pay for ongoing repairs and maintenance.
Are you getting the hang of this yet? The buy-to-let market isn’t as hard as it looks…
Tip #6: Hire a professional letting agent who can help you take care of all the important details. This individual can manage the property, collect the rent and vet and select suitable tenants. Just remember that a full management service may eat up as much as 17.5% of your annual rent!
Tip #7: Don’t forget to purchase proper insurance for your buy-to-let property. If you decide to rent out your previous residence, you’ll have to buy new insurance because your existing ones won’t be valid.
Here are a few more of my property investment tips…
Tip #8: Find out your legal obligations. For example, landlords must consider fire, safety and health issues and hire authorised professionals to perform annual gas checks.
Tip #9: Consult with a tax expert or accountant to determine what taxes you must pay. You will have to pay tax on any rental income received from your investment property, but you may also have to pay Capital Gains Tax. This depends on the length of time you have owned the property and your current tax status.
Just one more of my property investment tips to go…
Tip #10: Last but not least, don’t enter the buy-to-let investment market planning on making a ton of money quickly. There are many upfront costs and property values tend to rise over time. If you plan on remaining in the market for 5 to 10 years, you’ll usually make a lot more money!