The real estate industry is a good place to invest on. Right now, the industry is experiencing a resurgence that is why many investors are taking hold of the opportunity. For a lot of investors, buy-to-let has become the most attractive income investment. Letting helps you get extra income because provided that the tenant pays on time, you would be receiving an amount that can cover the rent of the property as well as a little extra for yourself.
It doesn’t matter if you have flats to let or a fully functioning house; letting can help achieve long-term security because while you are getting a monthly income, your property also increases in value the longer you hold it. You may be able to become your own boss as it is the same thing as handling a business. You will also have the option of selling the property when the time comes, making buy-to-let very flexible.
If you plan on getting into buy-to-let investments, take heed of the following tips.
- MARKET RESEARCH. It is important that you are aware of both the benefits and the risks that come with buy-to-let. Ask yourself, how much do you know about its market? How much do you know about your competition? Before you get into buy-to-let, make sure it is what you want.
- The area you choose is also critical to your success. Is the location a habitable area where numerous people come to live? Does it have a special appeal? Consider the transportation as well as the establishments present within the location.
- SHOP AROUND. In order for you to get great deals, you would have to look around. This means you have to grab your professional boots and walk around various places. Also, research is crucial otherwise you’d just be circling around.
- What is your target tenant? Are you aiming for short-term students or long-term professionals? Put yourself in the shoes of the tenant. What do you think they would want to see in your property? Will you allow them to decorate your property? Will you require insurances for them?
- DO THE MATH. Take a pen and a paper then calculate the costs of buying, the income you would expect and if you plan on loaning, how will it affect everything?