Connect with us

Home Improvement

Top Tips When Planning To Invest In A Rental Property

Top Tips When Planning To Invest In A Rental Property

Buy-to-let properties have become a popular investment in the UK nowadays, especially due to the fact that mortgage rates are lower than ever and investing in stocks seems a less-than-profitable idea because of its volatility. But if you are thinking of investing in any type of property – whether it’s a residential house, a flat to rent or even land – there are some essential aspects to consider before you put down your hard-earned money.

Top Tips When Planning To Invest In A Rental Property

Following are a few top tips when you are planning to invest in a rental property:

Do the Appropriate Research

First and foremost, you should make it a point to do some research. This is especially true if this is your first time investing in a rental property. Knowing the risks as well as the benefits will help you make the best decision and allow you to invest in property that will give you a good return.

What you can do is ask around – if you know anyone who has made an investment in property for rental purposes before, ask them what the entire process entails. Knowledge is power when it comes to property investment. If you have an idea of where to purchase property, then do the proper research on the area’s economy, services, and the like. If you are planning to buy flats to rent in Brentwood, for instance, then it would be a good idea to familiarise yourself with the location and seek local knowledge by asking for advice and recommendations from locally-based estate agents and property specialists.

Select an Area with Potential

Whilst we are on the subject of your property’s location, it will also be in your best interest if you can see the potential in that particular area. Mind you, the area does not need to be expensive in order to have potential.  Consider several factors, such as the area’s accessibility to public transport and the ease it gives to commuters, if there are any available schools, and if the area is a hub for university students and the like. Check the area for any commercial services and establishments as well, such as dining, recreation, shopping, and health services. The better its services and offerings are, the more likely someone will want to live there.

Most property investors tend to purchase property close to where they live, since they are already familiar with the area. But it might also be a good idea to move out of your ‘comfort zone’, so to speak, and explore other areas to see if they offer a better investment option.

Assess Your Finances

Of course, one of the foremost considerations is your budget and finances. To help you decide whether a property investment is worthwhile, make a list of the properties you have already looked at or the properties you have in mind. Additionally, make an estimate of the rent you can expect from the property. Generally, your rental fee should be able to cover 125 percent of your repayments for mortgage. When you have made your calculations regarding mortgage rates and possible rental fees, make an estimate of the cost of maintenance as well. Make preparations for different scenarios, such as if the rental property stays vacant for several months – what will you do then?

When all is said and done, buy-to-let investments can bring you a significant and highly satisfactory return. And by doing the necessary homework (and legwork), you can rest assured that the property you invest in is more than worth it.

Continue Reading

Recent Posts

Top Alteryx Competitors Top Alteryx Competitors
Tech2 days ago

Top 15 Alteryx Competitors

The world has seen a tremendous rise in startups and new incorporations in the business world. Companies have great potential...

Lifestyle2 weeks ago

Latest Wedding Trends for 2023

If you’re planning on getting married this year, chances are you’re probably overwhelmed and confused when it comes to wedding...

Lifestyle2 weeks ago

Tips To Make The Most Of Your City Break In London!

London is one of the best cities in the world, known for its quintessentially British culture, great nightlife, fantastic museums...

General3 weeks ago

The Ultimate Guide To Packing For A Trip To London

London is one of the best cities in the world, known for it’s rich history, quintessentially British culture, the best...

Tech3 weeks ago

Top 15 Web Development IDEs

The web development field has seen sustainable growth throughout the years. As technology is advancing, so is the web development...

devops devops
Tech2 months ago

12 Key DevOps Programming Languages to Still Popular in 2022

“DevOps is not a goal, but a never-ending process of continual improvement.” – Jez Humble Delivering the finest of services...

Entertainment2 months ago

Festival Fashion Style Tips For 2022

Summer is well and truly here and with that comes the festival season! From the biggest stars performing on stage...

Green & Energy2 months ago

4 Tips For Making Your Wardrobe More Sustainable

Everyone is trying to make more of an effort to make their wardrobe more sustainable, but often are unsure where...

General2 months ago

7 tips on how to organize a budget-friendly move

If you are planning a move any time soon, you might be worried about all the expenses that wait for...

Metal Roof Colors Metal Roof Colors
Home Improvement3 months ago

Metal Roof Colors: How to Select the Best Color for a New Roof

Choosing the right type of material for your roof is enough of a hassle already that the question of choosing...

Health3 months ago

Simple Ways To Feel More Confident At The Gym

If you are new to the gym, or you haven’t been in a while, sometimes you might not feel completely...

Business3 months ago

Can You Use Residential Property for Commercial Use

Having extra income, constantly flowing in can make all the difference in the current economy. Getting creative with how you...

What Do Business Consultants Do What Do Business Consultants Do
Business3 months ago

Running a Business? How to Minimize Supply Chain Issues

Supply chain issues have always been an issue for businesses but over the last few years, the effect and widespread...

Home Improvement3 months ago

How to Increase Your House Value Before Selling

Increasing home value is the first step to making your place more attractive for future buyers. Whether you are trying...

General3 months ago

Why Calorie Control Is Still The Best Way To Diet

There are a great deal of different options when it comes to dieting, every day there seems to be a...

Categories

Archives

Trending