Buy to Let is still seen as a viable way to get a good return for your money with low interest rates and volatile stock markets. We at James Duggan have vast experience in finding tenants and managing properties. We can also help with advice when looking to purchase a property to let and arranging But To Let mortgages.
With this vast experience and wealth of knowledge we have drawn up a list of 8 things to consider when thinking of investing in a Buy to Let.
1.Research The Market- Ensure you are sure this is what you want to do with your money. What are house prices doing, what returns might you get? It sounds obvious but it is a long term commitment so you need to be sure this is the best way to get a return on your money.
2.Choose The Right Area- where you buy is very important. Do you want somewhere convenient, do you want a student area, a place near top schools? Match the kind of property you can afford & want to buy with locations that people who would want to live in those homes would choose.
3.Do The Maths- Most lenders now require 25% deposit on a buy to let mortgage also factor in the interest rate and fees. Our in-house Mortgage Advisor can shop around for the best deal for you.
4.Factor in Maintenance Costs- Don't forget to allow for some maintenance costs to the property and also if it was lying empty for a while you would have to cover the mortgage.
5.Think About Your Target Tenant- Put yourself in the shoes of your tenant. If it is student it can be clean and comfortable but not luxurious. If it is a professional then it can be stylish and modern.If a tenant wants to decorate or change furniture then they are more likely to stay long term and look after the property. James Duggan Estates have a wealth of experience in finding tenants, vetting them and ensuring they are good tenants.
6.Go for Rental Yield- Experts say you should be investing for income and not short - term capital growth. Most Buy to Let Mortgages are Interest Only. Once you a have a good return above the mortage payments then you can start saving or investing the cash in something else.
7.Consider Further A-field - It may be that the right house is not in a area you are familiar with. This should not put you off as here at James Duggan Estates we have experience in rental properties all over Northern Ireland and the UK.
8.Consider How Hands On You Want To Be- If you manage yourself you will need to factor in giving up weekends and evenings on viewings advertising and repairs. Here at James Duggan Estates for a small monthly fee we take care of everything including repairs, renegotiating contracts and checking properties.
Keep up with the maintence and make sure your place is a nice place to live and you should minimise the time the property is empty!
If you need any more information about a buy to let mortgage, finding tenants and managing properties please do not hesitate to contact us.
