Purchasing a property for the purpose of letting to tenants is a great financial option if you pursue it in the correct way. A buy-to-let property offers you a great asset, as well as a stable income and potential long-term financial gains.
However, there are certain things you need to know when purchasing a buy-to-let property. Here at Belvoir, we’re the property letting experts, so here are our top tips for purchasing a buy-to-let property.
Find the Right Area
When it comes to purchasing property, everyone knows the three rules: location, location, location. This still applies when purchasing a buy-to-let property.
It’s important that you research the area and the local market in order to make the most of your investment. Find out what local amenities there are, such as shops, supermarkets and local schools, as these will work to entice prospective tenants.
Target Market
When you’re inspecting properties, always keep your target market at the forefront of your mind. A house that would be well-suited to students may not be appropriate for a young family, and vice versa.
You want to ensure that the property you purchase would suit your ideal tenants, and therefore it’s crucial that you consider this before placing an offer.
Finances
Getting your finances in order is essential when purchasing any property, especially one that you intend to let. You must work out what you can afford and find a mortgage that’s both affordable and appropriate.
You should also get an estimate of your potential annual rental yield, which can be given by a professional letting agent. This will give you an accurate representation of how much you can expect to earn from the property, and then allow you to determine whether or not you can afford to purchase it.
Purchasing a buy-to-let property can be an excellent financial choice, and one that has many benefits. However, you shouldn’t enter into this commitment without seeking professional advice. If you’re looking for a letting agent in Sutton Coldfield, at Belvoir we can help you through the whole process, from evaluations to finding the right tenants. For more information, contact us today by calling 0121 321 3388.
