What to look for in a buy-to-let property
So you’re looking at investing in a buy-to-let property. Well, if you’re not sure how to go about it or what to look out for in your property, here are a few things to consider:
Potential rental or growth
When choosing your buy-to-let property, decide what your priorities are. Would you rather buy a property from which a high and regular rental income is likely or one in which a high growth in value is a possibility? A good rental yield and growth don’t necessarily come together, so your priority in this regard will play a great part in your property choice.
The likely tenant
Have a picture of your preferred tenant before you invest. If you want to rent to young professionals rather than students, for example, you’ll want a property that is finished to a higher specification, with en-suite bathrooms for each bedroom for example.
Some buy-to-let markets have a very specific clientele, who’ll have a detailed wish list for the properties they’ll rent. If you are investing at the luxury end of the market, then contact a Monaco estate agency to assist you in finding the right property.
Location is the name of the game
The location – the crucial factor in your buy-to-let plans. Do you want something that’s close to home and easy to keep an eye or not? Is it a property you want to live in yourself at some point, retire to maybe or not? Or is it simply an investment from which you want a steady income.
When looking for your buy-to-let property it’s crucial to look out for one which will meet your financial properties and suit your ideal tenant too, and picking the right location will help you to do both. So if the regular income provided by students is a priority, then investing in a northern university town might prove ideal. On the other hand, if a retirement in the sun is your aim, then investing in a sunnier climate abroad might be the right choice.
Infrastructure, investment, and growth
Also, give a thought to the broader area too and do your research before investing. If growth is your priority, then search for up and coming areas; like those inexpensive areas that are close to more sought after ones.
Look out for investment projects too, particularly infrastructure projects that could lead to a significant growth in value. So keep an eye on big rail projects and the like. Also, give thought to any problems affecting the area like flooding, for example, search on local news websites to see if there are any negative associations with your preferred location and talk to people in the area if you can.
Another key consideration when looking for buy-to-let property is the condition. Give a thought to whether you want a property in a turnkey condition that you could let out from day one or whether you are prepared to take on a project. It might be that buying the worst property in the best area, would lead to the greatest growth in value. However, you’d need to put in the hard work or pay for someone else to do it, so you’ll have to consider if your budget will run to this additional cost.
So there you have a few pointers to consider when choosing your buy-to-let property. The location, likely tenant, condition and local infrastructure projects are all things to look out for when selecting your property.