Buy to let properties can be lucrative, but only if you go about the process of selecting the right property for you and your prospective tenants carefully. The top tip here is well worth remembering - 'Use your head, don’t follow your heart'. Yes, you like the property you're intending to invest in, but you don't necessarily need to love it. Also worth remembering, is that you are not buying a property in which to live.
Your first steps would be to consider your budget and the type of tenants to whom you plan to let your property. Families prefer suburban properties (with some outside space) near schools, while young professionals tend to look for well-equipped apartments to rent near transport links, sports and entertainment facilities. Student lets should be close to a university or college with multiple travel options.
Your next step is to research house prices and rents across several areas. Remember to factor in a 25% deposit for the lender. With lots of new builds for sale as well as character homes at good prices, the buy to let options are as varied as they are plentiful.
If you are considering investing in a buy to let or would like help choosing the right property, talk to us at Strawberry Star.
Pick the right property and you could enjoy a steady stream of tenants - and healthy rental income. Make the wrong choice and you could struggle to balance the books – and find yourself threatened with mortgage arrears.