25 Apr Buy to Let – Our top tips part one
We have an extensive portfolio of landlords and tenants and there aren’t many more experienced Lettings Agents in Tunbridge Wells and the surrounding area. Our Lettings department is thriving and we are seeing more and more people entering the world of ‘Landlording’.
Right now is a pretty good time to get in to the market if you’re at all tempted. Buy-to-let mortgage rates are really low at the moment, however, stamp duty and income tax legislation has been passed to make it a little less attractive.
We’ve put together some tips to help you through this pitfall ridden arena but we simply have too much to say in just one article so we’ve split it up into two. This is part one, with the next to follow next month.
Of course if you would like to speak to a member of our expert team, please feel free to contact us via email or call us on 01892 530109.
Research the Market
If you are new to the market, make sure you are well-read on the matter. The Buy-to-let market has many benefits but it is important to understand the risks as well. Is this the best investment for you? Manage your expectations and speak to experts to get the best advice.
Do the Maths
This is a no-brainer. Make sure you have sat down to work out your expenditure vs income. A good rule of thumb is that any rent gained from the property is around 125% of the mortgage repayments. You may need to consider what and where you buy in order to get to this benchmark. It is also important to remember that this year a tenant fee ban will be imposed so you might want to increase that number to around the 150% of mortgage payments to cover yourself. Remember to allow for maintenance costs as well.
Mortgage Deals – shop around
While your current provider might have a deal which seems attractive, don’t just snap it up. There are some great deals to be had on buy-to-let mortgages so make sure you shop around and find the most competitive product. It’ll really benefit you to speak to a good independent mortgage broker who has access to the whole market – they will be able to point you in the direction of the most appropriate mortgage product for your circumstances.
Choose your area
Not all locations were created equal. If you are looking to invest in property, location is as important as it is when you’re buying to occupy yourself. A promising/upcoming area can be a veritable gold mine if you buy the right kind of property in the right area. Not only will you attract tenants but when you are ready you will attract a good price upon resale. Do you research, find out if there is planned investment coming to the area.
Your Target Audience
Take a moment to think about the type of tenant you are looking to attract. What you think is great in a property might be different to the type of people you are hoping to attract as a tenant. Making sure the property is neutral with clean lines will enable your tenants to decorate and make their mark on the property. Tenants who are allowed to do this tend to stay for longer and take better care of their home.
Next month we’ll take a look at property pricing and some of the obstacles which could trip you on your way to your perfect buy-to-let property.
Get in Touch
If you would like to speak to a member of our team about your property options please make sure you call us on 01892 530109 or email us. Remember, for property in Tunbridge Wells and the surrounding areas, follow us on Facebook, Twitter and LinkedIn.