The Top Three Things to Consider When Buying to Let
At Jane Wood and Associates, we regularly work with clients who are looking for the perfect investment property, both seasoned property investors and professional landlords, and people looking to open up an extra revenue stream. When we’re locating such properties, we always have a number of factors we need to consider to provide our clients with the type of property that will bring them the return on investment they need from the dynamic London property market.
So whether you’re completely new or have a wealth of experience, here is everything you need to think about when purchasing a rental property.
Location is an incredibly important factor when choosing a rental property, not only for your potential tenants, but for yourself too (although this will depend on how hands-on you want to be as a landlord).
Location will affect your rental yield, and whilst rents in London are significantly higher than the rest of the country, yields fluctuate across the capital.
Who do you want to attract?
Another factor you need to think about is the kind of tenant you want to deal with – for instance, buying near a university campus is perfect if you want to attract students, but if you want families to rent your property, it’s wiser to purchase property close to a good school.
Additionally, the type of property you buy will influence the type of tenants you attract. Semi-detached houses with gardens are a firm family favourites and young professionals will often go for apartments.
If your property has good quality fixtures and fittings, and is in a generally good state, you’ll be able to enjoy a higher rental yield without having to do that much work.
How much effort will you be putting in?
Why are you becoming a landlord? People do so for a number of different reasons – some see it as their retirement provision, others envisage their children living in it in the long run, others just want a stable investment. The amount of effort you’ll be putting into this property will determine the rental property you should buy.
Before buying anything, ensure there are no long standing or structural problems, as this will cause you a multitude of costs and problems later on, which can be massively exacerbated once tenants have moved in.
Rental properties are investments that should bring you welcome income both now and in the future, so it’s important that you choose a rental property that will fit in with your lifestyle and provide you with the payoff you want in the future. Here at Jane Wood and Associates, we’ll carry out all the hard work and field you the property that will deliver the return on investment you’ve been dreaming about.
For more information and a discussion about what you want from your buy to let property, call us today on +44 (0)207 602 8779.