Increased demand for private rented accommodation and the availability of buy-to-let funding has resulted in a dramatic increase in the number of private landlords in the UK over the past few years.
Careful consideration of a number of key issues is extremely important when buying an investment property and can help landlords avoid expensive mistakes.
LANDLORDS WHO ARE LOOKING TO BUY AN INVESTMENT PROPERTY SHOULD CONSIDER THE FOLLOWING:
What do I actually want to achieve?
Whilst this may sound obvious, landlords regularly fail to set themselves clear goals and separate business issues from personal issues. At its best, an investment property will operate along the lines of a small business and have a clear understanding of what it is trying to achieve and where it is placed in the market.How can I achieve a strong yield, capital growth and ensure that the property will re-sell when the time comes?
These factors can often compete. Property that is likely to increase in value and re-sell fairly easily may be more expensive to buy in the first place and offer a smaller yield (return on investment) than a less expensive property with similar accommodation.What sector of the rental market should I be aiming at?
Landlords need to understand the sector of the market that they are aiming at and the key priorities within this sector.How much time and effort will be required on my part?
Good properties are much harder to find than poor or average properties and most properties need some form of work and preparation before they can be let. This can take considerable time and effort.What physical factors should I be aware of?
Factors such as the location, the size of the rooms and the age of the accommodation are particularly important factors and need to be fully considered.What about property condition?
There are endless property condition factors to consider when buying an investment property and even experts can get this wrong. The challenge is to reduce potential costs, risks and unknown factors as much as possible.THE ROLE OF 1LET:
If you are thinking about buying an investment property why not speak to us first. A large number of the properties that we currently manage were sourced by 1LET for clients in line with their requirements and budget.Initial advice and help from 1LET with your investment property purchase is free of charge and without obligation.
