New Year’s Resolution – investigate that buy-to-let
- 18th December 2014
- Buy-To-Let Property News
Potential landlords thinking about investing in the buy-to-let market in the New Year should do their research over Christmas
Those looking for their first buy-to-let, or their next buy-to-let, will have already spent some time researching the options, but the London property market is constantly evolving.
A clear view of the costs is essential for any would be buy-to-let landlord. Buy-to-let mortgages are extended on slightly different parameters than to those buying their own homes, and these can vary from lender to lender. A good yield starts with a good mortgage.
Picking an area is just as important as picking a house. Factors such as schools, transport, and neighbours are going to be prime considerations for tenants and so should be for landlords too. Having an eye on the future interms of local developments is also vital. Whilst it can be advantageous to buy close to home, there is sense in diversifying to areas with different risk profiles.
Landlords need to give serious thought to who their tenants might be. Renting to families and students are slightly different propositions, both with their pros and cons. Proximity to amenities such as restaurants and bars as well as good transport links to the City and West End are vital for attracting young professionals - a key target market for buy-to-let landlords.
Redecoration is often worthwhile, but should reflect the needs of potential tenants rather than the taste of landlords.
Stephen Ludlow, Chairman of ludlowthompson says: “A good estate agent will be able to advise you on your options, but in order to take best advantage of that, potential landlords should do their own research too.
"By ensuring that your investment is attractive to young professionals, landlords can put themselves in a great position to gain the highest yields.
“In a market with as many options as London can offer the possibilities for a successful investment areboundless. However level headed consideration is an essential ingredient in achieving that success.”
A good estate agent will be able to advise you on your options, but in order to take best advantage of that potential landlords should do their own research too.
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