If it’s an income, capital growth or a balance of the two an increasing number of people are realising the benefits of property investment. Demographic trends also illustrate that there will be a continuing and rising demand for suitable, quality property within this sector, thus providing an excellent investment vehicle.
Buying a ‘BUY-TO-LET’ property
Buying a property to let can be a good investment, or it can be a financial disaster. Making the wrong move can leave landlords with financial difficulties with mortgage payments if there is no rent coming in from the property. But, making the right investment can mean a bit of extra income and a stable asset.
Do your homework
Investing in property to let is not an instant road to riches scheme. Before you dive in, be prepared to:
- Have a deposit on the property tied up for an indefinite period. This is usually about 25-35% of the property value.
- Get the place up to a standard where you can be confident it will attract tenants.
- Pay for maintenance.
- Weather fluctuations in the market.
Tips for success
Location, location, location. This is one of the most important factors a tenant will look for. Desirable properties are conveniently located for public transport, local amenities, restaurants and bars and have parking facilities nearby. If you are buying to let in the student market, proximity to the university is also a major selling point.
Consult local letting agents and try to find out which areas and what kinds of property are in demand.
Charging too high a rent will put off prospective tenants - research the market conditions thoroughly. Remember that rent is not the mortgage, and if the lettings market is sluggish, you may not succeed in covering your entire monthly mortgage amount.
A well maintained and attractive property will be much more in demand than a rundown property.
If you decide to let the property furnished, it is worthwhile taking some time to find out what features make a property desirable to tenants.
If you have the money, time and inclination, you may consider investing in a property that needs some work. You'll be able to customise it to the needs of your tenants.
If you do not have the time or interest to buy a property that needs a lot of work, a newer property may be more suitable. However, it is worth remembering that even new properties will need maintenance and this will increase as the property ages.
When you are buying the property, try to remember that it is not you who is going to be living there. Look at it with an objective eye. Think about the property from a tenant's point of view.
Travelling from Overseas to View?
If you are travelling to Nottingam by air to view a number of properties with us then we will send an executive vehicle to collect you from the arrivals terminal. Subject to availability.
