Buying a buy-to-let project.
An easy mistake to make when deciding to start a portfolio of buy-to-let properties is to under estimate the need for a professional approach and that infact you are running a business, to many it can appear a relatively simple way to make money with little risk, emphasis should be made on maximising potential return while minimising potential loss. It would appear by the demand for living accomodation in the UK that the buy-to-let market should remain bouyant for years to come, good research is the key and if as a Landlord you wish to manage your own properties then you need to be aware of all the existing regulations and keeping to date with new regulations as they are announced.
Researching the area is extremely important, knowing what employers are in the area and what plans there are to make changes, many buy-to-let investors are presently following the crossrail path in London and suburbs as areas for good return and capital growth especially close to the stations. Choosing the type of tenant is something that will go hand in hand with the area chosen, being able to afford a quality property in a quality area will normally attract quality tenants, in that respect there should be less problems with such tenants and in most cases they will be working, when letting to tenants who are claiming social benefits it is not always the case to expect problems but to be vigilant at the outset and make sufficient enquiries to know about who you are letting to.
If like many there is a need for finance to be able to purchase the buy-to-let then be sure to do the research, new tax rules have been announced that will reduce certain tax allowances against the repayments, advice should be sought from both financial advisor and accountant in such matters. The amount that you intend to spend on the property is another important factor as if you over spend then maybe you will go above the ceiling value of your property which may affect yield and may affect any capital gain in the future.
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