How to invest in buy to let
How to invest in buy to let
When it comes to property investing, there are two main avenues open for you to explore. You can buy properties that require work, complete this, and then sell on for a profit. Or, if you prefer, you can buy a property you rent out to tenants.
Both of these options have their positives, and for many, the lure of a long-term income that comes with buy-to-let rental properties will outweigh selling a property.
It can be hard to know where to start regarding buy-to-let properties, so we have put together our quick guide on investing in buy-to-let.
Find a mortgage
Before you even begin to think about the type of property you want to buy to let out to a tenant, you need to consider how you will fund the purchase of this property. For some, you may be lucky enough to have some money that you can use to purchase the property. But this may only be the case for some.
If this is not true for you, you will need to think about finding buy-to-let mortgages. These are designed to help landlords purchase a property that they can then rent out and come from various providers with their own rules and regulations to keep in mind.
Then a property
Once you know how much realistically you will be able to borrow to purchase a property, the hunt can begin for the place you want to buy. It is essential to recognise the letting you are looking for; student, HMO or even short-term, holiday-style lets.
When you know the type of property you are hoping to invest in, you can look for one to buy.
Speak to local estate agents.
If you are finding it hard to know what type of buy to let property invest into, then you should speak to some experts in the local area and estate agents. These will not only be able to tell you more about the prices of properties in eh areas but may also help you consider your rental options.
Although you should be aware, they may want you to sign up for their service to give out this information.
Decide who will manage it.
Following on from the above, you need to decide on who will be in charge of managing the let of your property. You will want to ensure they will be professional and reliable to give you and your tenants the best service possible.
Some landlords even decide that they want to manage their properties themselves. Whilst this can save money and help you retain control, the truth is that working with tenants regularly and ensuring that you have completed all the things you need when it comes to your rental property may be more complex work than you initially realised.
As you can see, investing in a buy-to-let property can be trickier than you realise> However, we can promise you that it is worth it in the long run. Not only is it a significant investment, but it is also one that is easier to learn from and to be able to implement what you have learnt in the future.