0

Top 10 tips when purchasing a Buy-to-Let Property

purchasing a buy-to-letHere are just a few tips to help you if you are thinking of purchasing a buy-to-let, courtesy of Propsavvy.com

Research Location

Research thoroughly in a location before even deciding to invest.  Check for local amenities, transport links, schools and more. These factors will all have an effect on the value and rental demand for your property

Define Tenant Profile

Think about what type of tenant you are looking for to reside in your UK property (family, young professionals, students) and present the property according to this type. There is no point producing a five star quality home when the local rental market requires student accommodation – you’ll be wasting your time and money. If your property is classed as a HMO (House in Multiple Occupation), make sure the property has a licence to operate from the local council.

Talk to a broker

Some buy to let mortgages are not available direct so get a complete picture of the finance available, consider using an independent specialist broker that has access to the whole market. They will have the necessary experience to match your borrowing needs. Make sure you use a broker that is part of the National Association of Commercial Finance Brokers.

Monitor buy-to-let rates

Monitor market rates and compare them to yours. Look to see if switching to another rate makes more financial sense. Make sure you are getting the best deal possible.

Maintain your property

Weigh up the pros and cons of maintain your property yourself or paying a letting agent to do it for you. If managing yourself you need to consider whether you have the right skills and contacts to make sure things are done quickly and efficiently.

Check your tenant

Undertake credit reference checks on new tenants. Tenant referencing checks can cost as little as £10 per person. You should also ask for an employee reference.

Protect tenant’s deposit

You must, by law, protect tenants deposit via a deposit protection scheme. Failure to protect the deposit could result in you having to compensate the tenant up to 3 times that of the deposit.

Claim Landlord Insurance

Landlord insurance is designed specifically for rental properties and covers circumstances not covered by normal household insurance. If you own multiple UK properties you could save money using an insurer that will provide cover for all properties on a single policy.

Keep Records

Keep accurate records for each UK property you own. Create a simple spread sheet or if you have a number of properties you could hire a bookkeeper.

Become Accredited

You can get support from your local council, many of which offer accreditation schemes to help landlords protect tenants interests.

Hopefully this helps you when purchasing a buy to let property. If you need any more help please contact Propsavvy for further information on this and other BMV property.

 

Advertisements
0

Investing in Real Estate – Can they help you grow your dollars and earn good profit?

Are you interested in real estate investment? Do you know that investing in this market will help you grow your money very fast and earn good profit? There are definitely several pros and cons associated with real estate investment. You will have to gather sufficient knowledge about the real estate market before you decide to invest your hard-earned money here. Since this kind of investment requires good amount of cash, many people cannot afford to invest in this sector. In a real estate investment, the investor purchases a property by checking its present value and the profit it can bring in the future.

4 Tips for Investing in Real Estate         Investing in Real Estate

Read on to know about the 4 tips you need to know for real estate investment:

  • Start by making small investment – You can buy a house to keep it as investment even when you already have one. This will help you start your business with little investment. It’s advisable that you do not purchase many properties at a time when you’re making small investment. This is because if the price of real estate falls suddenly, you may have to face loss in investment.
  • Begin from your own place – It is a wise decision to start real estate investment from your own place where you are well-known. It is very common that people like to purchase real estate from a known person. So, it’s important that you have good reputation in your place. This, in turn, will help you get more customers and increase your high chance of earning profits.
  • Try to invest more money – You will require more money if you’re planning to go for real estate investment. Make it a point to check out your financial condition properly before investing in real estate. In this way, you’ll be able to make more money by investing in real estate.
  • Do not make cheap investment – The real estate investors often commit the mistake of buying cheap property with the hope that it’ll bring them good profit in return. It’s advisable that you do not purchase inexpensive property. Before purchasing any property, find out whether or not it will fulfill your exact requirement. In case you buy cheap property for the sake of money, it can be the most valuable property for you if it does not bring you any profit in future.

Make it a point to gather proper education on real estate investment when you decide to purchase property. Try to build good and healthy relationship with the real estate agents within your area. This way, you will be able to invest in the right property and make good profit with it in future.

About the Author:

This guest post was contributed by the guest blogger, Shannon Williams.

0

Smart Ways to Invest in Real Estate

Purchasing valuable property is one of the secure ways to invest money. These days, there is a tremendous growth in real estate industry as more people are investing their money in real estate business. One of the major reasons for investing in real estate is change in price rates. The prices of these estates are growing very high, where people who have invested in it are able to earn huge profits in return. If you are looking for a smart investment for future security then invest in real estate.

Smart ways to invest in real estate:

  • Budget: Organise your budget effectively. Analyse the amount that you can spend in real estate. Based on your budget, research on the internet or shop around to find best deals.
  • Do a survey: You need to do a survey to find the best real estate agents who can minimise your risks. Through survey you can find the false and authorised agents. Take smart decisions before approaching a particular agent. For instance, try taking advice from your friends or relatives to find the best local dealer.
  • Location: Location matters a lot. As you’re investing a hefty amount in property, select the best location which can ultimately bring profits in the long run. For example, some may look for the place that supports eco-friendly environment and well connected with the public transportation.
  • Real estate agent: Select the best real estate agent. You can ask your broker to show properties and their rents respectively. Also find the number of investors who have already took his advice. If possible, speak to those customers and get their feedback. Ensure that your agent has a well-connected team which includes property managers, mortgage brokers, home inspectors, accountants, lawyers, insurance adviser etc.
  • Property manager: If you have purchased more than five rental units, consult a property manager. The Property manager helps in proper maintenance of your home and can bring renters. But you need to give some percentage of amounts, probably 10% of your rental amount to these managers.
  • Have an agreement: Partnership agreement can balance future conflicts because you may not know how life turns out to be after you sign a legal agreement in beforehand. Investing with others can be a smart option.
  • Eliminate certain activities: After making a successful plan, find the areas where you can save your time and money. For example, if your goal is to make five offers per week then try to cut down your entertainment time, chatting with friends etc. Doing these little sacrifices, you can gain a lot in future.
  • Increase your home value: There are many advantages of investing in real estates. Be active and find different ways to increase your home value. For instance, painting home, fixing plumbing and other issues can increase home value. You can identify hidden or upcoming expenses by taking the help of home inspectors. Never ignore home inspection which reveals hidden problems. Try to take smart decision after home inspection.

Follow these simple tips and make a smart investment. It is must to insure your property to safeguard it from unexpected situations. While taking real estate loans or personal loans, consider payment protection insurance(PPI Claims) policy to protect its monthly payments. You can also compensate refund on this policy using ppi claims when you met eligibility criteria as disclosed in the agreement..

About the Author:

This guest post was contributed by Leo, financial guest blogger from Manchester, UK. Find out more about her finance related blogs at financeport