3 Essential Steps to Becoming a Successful Buy-To-Let Investor
Making money as a landlord is easy, right? Not necessarily. Unfortunately, investing in buy-to-let properties is more than buying a property, finding some tenants and sitting back to watch the rent roll in.
However, whilst it can be far from simple, making money as a buy-to-let investor is possible, especially when you know how.
Whilst the following tips may seem obvious to some, surprisingly, it’s advice that many eager investors overlook. Avoid the same mistakes and invest wisely, with these 3 expert tips for making your buy-to-let property investment a success.
Location, Location, Location
Spending time researching the property market is vital if you want to make a prudent investment decision. There are many aspects to consider when choosing a buy-to-let property. Aspects such as local transport links, nearby amenities, schools and even crime rates. All of which will impact the property’s potential rental yield, as well as the possible resale of your property in the future.
Remember, you can change a property through decor, but you can’t change its location. So, for more long-term vacancies and rental profits, the location of your property is something to consider at all times.
Know Your Budget
You’ve found a property that fits the bill, so what happens now?
Now it’s time to negotiate.
Remember, this is a business investment! If you want the best possible return on your investment, don’t be afraid to haggle – you want to get this part right.
Entering into property negotiations is a daunting process. However, as a buy-to-let investor you’re in a powerful position. You’re not part of a chain, you’re not personally affected by whether or not the sale goes through. You can walk away at any time – and the realtor knows this. Use this to your advantage; let it be leverage for a lower down payment and faster sale completion.
The same applies when shopping around for the best buy-to-let mortgage to suit you. Be clear in your own mind on how much you can afford, and don’t feel obliged to accept the first rates offered to you. Do your research, seek the advice of an expert mortgage broker, and increase your chances of enjoying greater profit for years to come.
Protect Your Assets
Once you’re the proud owner of a buy-to-let property, Building Insurance is essential. The unexpected can happen, and should it happen to you, without the right insurance you potentially stand to lose a lot more than your original investment.
In addition to building insurance, a smart buy-to-let investor will also look into good landlord insurance. The right landlord insurance could potentially save you hundreds of thousands of pounds, should the worst happen; it could help to pay for repairs, the relocation of tenants after an accident, cover lost rent. This is all dependent of course on what policy you opt for. But with help from a reputable broker you’ll be able to select the best cover to protect both yourself and your property.
Still thinking of investing for the future, with a buy-to-let mortgage? Contact an expert member of our team today!