Hull Buy-to-let Top Ten Tips Part 2
6. Dont be over ambitious, remember the costs….Most buy-to-let mortgages are interest free so the amount borrowed will not be paid off over time. However this can be offset with your tax bill. Once you have built up your emergency funds you can then start saving or invest the cash.
7. Consider looking further a field…. Although having a investment property in your own town makes it more convenient to manage does not mean its the best option. Properties here in Hull are very reasonably priced and a great market for investors. Properties in need of some work are always cheaper to buy and if you know some good contractors the work can be carried out cheaply making the property more of an investment.
8. Haggle the price….Investors have the same rights as first time buyers so always try to negotiate a discount. When there is no chain involved sellers tend to be happy to give some discount as they are aware the sale will go through quickly. It always pays to know the housing market when haggling if it’s a landlord looking to cash in on there capital gains they are usually more than happy to reduce the price for a quick sale.
9. Know the highs and lows about buy-to-let….House prices are on the increase but the growth has slowed. Think about if the prices were to drop even further would you still manage to hold your investment. While mortgage rates are low for now investors are seeing this as a good time to purchase there investment property. However always keep in mind that the rates may rise meaning your buy-to-let mortgage will increase also. Then there’s any repair issues that may arise within the property. Do you have enough funds in your bank to cover these costs? some repairs can be costly i.e boiler or the roof. If you feel you may struggle with these costs then investment is not for you.
10. How hands on do you want to be.. Will you manage your investment yourself or will you ask an agent? Managing the property yourself can be very time consuming and stressful especially if you have family, work commitments etc. Although managing the property does not take anything from your investment it does however cut into your family life and takes over your weekends and evenings. Shop around agencies and see what they can offer. Dont always go with the cheapest option as the saying goes YOU GET WHAT YOU PAY FOR.
Here at Belvoir Hull we offer a fantastic service with our vast knowledge of Hull we can help you find a buy-to-let property in the right area and with the best yield to ensure your investment works for you. Contact our Hull office on 01482 322300 or visit our website www.belvoir.co.uk/hull or email hull@belvoir.co.uk we are always happy to help!
