How to get ahead in the buy-to-let boom
Buy-to-let is when you purchase a residential property and instead of living in it you rent it out to tenants.
It’s a simple investment strategy and one that is attracting more and more people every day – in fact, recent estimates suggest as many as 1 in 5 homes are now owned by private landlords.
So in such a competitive market, how are landlords able to get ahead?
Here we share 5 insider tips which can help you to make sure you are spending your money on exactly the right kind of property.
1 – Have your buyer in mind
If you are going to succeed with your purchase the first decision you need to make is who you’re going to rent your property to. Not a specific name of a person, more their profile. Ask yourself, how old are they? Do they drive? Do they have children? What area of the city would they work? Once you know, you can target a property which meets all the specific needs of your perfect tenant.
2 – Location
Purchasing a property in a desirable area is so important if you want to make your buy to let a success. Buying a house that is close to a school or a train station are both particularly good ways to add value, making your property attractive to families and commuters alike and ensuring a steady supply of tenants.
3 – New build or older properties
Typically, newer builds are a safe bet as they provide fewer headaches in terms of maintenance. Old properties often require a lot more upkeep when compared with newer properties. New builds are usually more adaptable to modern life too, with more power outlets and internet connectivity options available. However, if you’re prepared to put the work in then you may be able to get a good deal on an older property in need of some TLC and make a healthy profit in the process.
4 – Gardens and garages
If it’s family buyers you have in mind then gardens are always preferable. Having a large, grassy garden encourages tenants to rent longer term. Renting a gardened property out to non-families is always risky as they may use the garden less and therefore allow it to get messy and overgrown.
Along with gardens, parking can also be a deal breaker for many tenants and having off road parking or a garage available on a busy street can really make your property stand out from the crowd.
5 – Ask the experts
When making such a big financial decision it’s important to have the best advice. Many buyers can end up overspending, or purchasing property in areas that are on a downward spiral, rather than on the up. Here at Hudson Moody we have an excellent knowledge of York and wider areas and will be able to help you make your buy-to-let venture a success. Call us on 01904 650 650 to find out more.