There is a lot of research involved in deciding to invest in property. Have you read our tips on whether buy-to-let is right for you?
If you decide it is right for you, do some more research into the specifics. It's likely you already have an idea about where and what you want to invest in, however, try to keep an open mind and remember to consider the practical aspects and your own financial needs.
- Remember the location can dictate the kind of tenant you may attract.
- Assess whether there are good transport links nearby.
- Is there a local gym, cinema, good restaurants or parks?
- Take a look at the potential rental income you will generate.
- An area you know well because you live or work there, may be a sensible choice, as you will be a hands-on landlord. Statistically, it's common for a landlord to live close to their investment.
- There are plenty of reasons to keep your investment separate and find an agent to manage the property for you. You are less inclined to choose a property that matches your own lifestyle and taste, and to focus on finding the best investment.
- Look out for up-and-coming areas. For example, look for property hot spots, where the area is being regenerated or improved transport links. These areas may be cheaper to buy now, but offer a good return on investment in the long term.
- What is the crime rate like in the areas?
If you are set on a particular type of tenant, it may be a starting point for your search. The type of tenant you choose to attract will go hand-in-hand with the location. For example, flats near good transport links into a city will attract young professionals, and property close to university campuses will be popular with students.
Once you have chosen a location, think about the property. There are several things that will make the property more appealing:
- If you have a specific tenant in mind, ask yourself or your agent what kind of property they might be looking for.
- Is there somewhere to park? Parking is always at a premium and if you are planning to rent to families, then the ease of a parking space will be a bonus.
- Gardens mean maintenance. Outside space is often at a premium, and so a garden is likely to add value to your rental income.
- New builds are typically less maintenance when compared to older properties. This can mean the house doesn’t cost as much to maintain.