You’ve probably heard about how profitable the property market can be. In fact, you may have first hand experience of making money on your own home.

Now you’re looking to take property investment a step further - by buying a house or flat to rent out.

But as with any financial commitment, it pays to find out all you can before you make the leap. And that's what this section is all about.

• How do you buy a property that’s not your home?
• What size of property can you afford?
• What type of property should you buy to let?
• And who can help the whole process run quickly and smoothly?

Don’t let such questions put you off buying to let!

Sheengold will give you the best possible advice, in plain language, no hidden costs, a true choice of products available, at the best possible rates to your circumstances.

 

Three Things to Consider When Buying a Buy To Let

If you are thinking about purchasing a buy to let there are a few important factors to consider before going ahead with the purchase to save yourself from any possible headaches.

The first thing you should do if you haven’t already, is to analyze the market and to find out from other buy to let owners what their experiences were. Learning about all types of factors in the marketplace will give you a better assessment of the risks that you are taking on.

The second most important factor to consider when purchasing a buy to let is the area in which you plan to purchase. The key to buying a buy to let is choosing an area where there is expected growth. This doesn’t necessarily mean that the cheapest demographic or the most expensive demographic is the first place to look. If a middle class neighbourhood is expected to increase by 20% and a ritzier neighbourhood is only expected to increase by 8% in value then you will want to find a place in the middle class neighbourhood.

Other factors to consider include its proximity to facilities such as public transport and where students want to live as you will have more prospective renters available to you. You can also expect to be able to charge more rent if your property has a hot tub, pool or similar facilities as well.

A third very important factor to consider when buying a buy to let is the math that is involved. You need to figure out how much the monthly payments will cost you and how much you will be able to reasonably charge for rent. You will want to be able to cover at least 125% of your mortgage repayments. Also be prepared in case the property isn’t rented out for a month or two will you be able to cover this should this type of event were to occur.