Purchasing a buy-to-let property can be an excellent and rewarding investment. If you choose the correct property, then a good long-term income from your investment is nearly guaranteed. However, as with all investments, there are always risks. To try to mitigate these, here are a few things that you should bear in mind when looking for your perfect buy-to-let property.
Know your target market
Who is your target market? If your target market is students or young professionals, you need to keep in mind their budget and ensure that you do not purchase a property that will be too expensive for them to afford. Remember at all times when viewing potential properties that you are not looking to fall in love with a property for yourself. Buying a rental property should be a decision made with your head, not your heart. Having said that, it can often help if you try to view a property through a potential tenant’s eyes, as that will allow you to see the things that might put a tenant off of your property.
Location, location, location
Look at local amenities and transport links and choose an area that will be attractive to your target market. For example, students will need to be close to their lecture halls and local amenities. Being within walking distance of local restaurants and bars would make your property even more attractive to them. Families, on the other hand, will be interested in the catchment areas of the local schools and how peaceful the area is. It can be wise to invest in areas that you know well, as your knowledge can help you select a tenant who will enjoy living there. Remember, happy tenants equal long-term renters, which means fewer rental voids!
Go big?
Smaller properties often have fewer rental voids than larger properties, as it can be harder to find tenants for larger, high-rent properties. That is not to say that you should not invest in a larger property, but you must be especially aware that if you do, you should take care to ensure that it is both attractive to your target market in terms of the make and type of property and in a good location for them.
Do your homework
Property prices rise and fall. Large profits can be made from rental income when interest rates are low, but rising interest rates can be a cause for concern for landlords. Make sure that you are aware of current trends in the market and keep on top of them even after you purchase your buy-to-let property in order to ensure that you are aware of and therefore can prepare for any upcoming issues.
If you are considering purchasing a buy-to-let property in NW London and have any questions or would like to join our early bird list to become one of the first to find out about our new listings then please give us a call on 020 7759 2199 or send an email toenquiries@vitaproperties.uk and we will be delighted to assist you.
