Buy-to-lets have been experiencing difficulty from the tax crackdown but a lot of people still see that property is an engaging investment at a time of low time rates. Changes in tax means extra stamp duty on buying a buy-to-let. If you really want to invest on buy-to-lets and improve returns on property then it is important that you do things right.
Here are Richard Butler Creagh’s best tips on how to manage your buy-to-let property:
Research about buy-to-let market
Before entering the market, you must make sure that this is the investment you want. In the past years, high-rate savings account can beat most investments in the market. Now that the rates are lower, investing in buy-to-let means tying up a capital in a property that may fall in value. Investing in buy-to-let will involve committing to thousands of pounds to a property and usually taking care of mortgage. If house prices will rise, then this means it can be possible to make big leverage gains above your mortgage bills. But if they fall, your deposit will get hit and the mortgage stays the same. If ever you know someone that has invested in this kind of market before, ask them about their experiences, the good parts and the bad parts. The more ideas you have and the more research you do, the more chances that your investment will pay off.
Choosing the area to invest in property
A good and promising area does not mean it is the cheapest or most expensive. Promising means a place where people would love to live in and this can be for a lot of different reasons. You must match the kind of property you can afford to buy with places that people who want to live in those homes would pick. In a lot of cases, people tend to invest in properties near to where they live because they are more likely to know the market better than anywhere else. They can also spot the kind of property and location that will do well.
Think about your target tenants
Instead of envisioning if you’d like to live in your invested property, put yourself in the shoes of your target tenant and as yourself what do they want. If they are students, the place needs to be easy to clean and comfortable but not opulent. If they are young professionals, it should be modern and stylish but not overbearing. Allowing tenants to decorate and add pictures and paintings makes it feel a lot more like home. Doing these makes the tenants stay longer which is good news for you.
Buy-to-let has been a great investment for most people, but for some it has been a disaster that has cost them thousands in losses. Consider this tips from property investment expert Richard Butler-Creagh and avoid making mistakes to make sure you get the best from your buy-to-let investment.