With demand rising and property in short supply, there has never been a better time to buy an investment property. The buy to let market is thriving and little wonder. The value of your property will more than likely increase. In some areas in the UK, for example, those increases are solidly in double figures. That means an investment in property makes more sense than any high-interest account. Secondly, you will be able to let your property out in a strong rental market. That means you will be making money at the same time. Here are three easy steps to help you get started.
Know your market
This applies to the property as well as the market for rental. This will help you decide what type of property to buy and where to buy it. All locations are not the same. Put simply, some are quieter than others. Having said that property is not staying long on the market these days. You have to act quickly, especially if you are buying in the competitive entry-level of the market. That means having your finances in place or knowing exactly where the money is going to come from. As a buyer, you will be in a very strong position if you can offer cash or are not involved in a chain.
The area will also dictate the rental market. For example somewhere close to, or in a University town will attract students. Students are less fussy when it comes to accommodation. You could let out two or three rooms in a house. Before you get too carried away with that idea, bear in mind your property may be empty for holidays, and not be as straightforward to manage. It might be a better bet to buy and let a small family home.
Buy with your head and not your heart
This is a financial investment. Unless you are going to live there at some point, don’t let your idea of the perfect property affect your decision. You do not have to like the area. You don’t have to like the position of the house or have to worry too much about how nice the neighbours are. The only thing that needs to concern you is the legal title and the state of the property. Secure the services of solicitors in sale. They have been doing this for a long time and are perfectly placed to help you through the whole process. You will also need a surveyor. You should be able to get a fixed price, and there are a range of different surveys you can choose.
Do the Basics
Again you are not renovating a property to live in. This is not about what you prefer. Clear the house and garden and decorate for functionality. Neutrality is going to be your best bet. If you fit out a kitchen, invest in good basic appliances. Decide whether you are going to let your property furnished or unfurnished. A family who come with their furniture, for example, may be encouraged to stay longer and look after the property better.
Now you are ready to go, the best thing you can do is engage the services of a property agent who can handle the entire letting process for you.