Making Sure You’re Successful in the Ever-Changing BTL Property Market

Although navigation of the buy-to-let property market has become increasingly difficult in recent years, the market still remains an effective place to invest, providing that you acquire the property you are seeking. With a record 2.5 million rise in buy-to-let investors according to research provided by estate agent Ludlow Thompson, the buy-to-let market is still riding on the height of its popularity.

Taking this into consideration, if you’re contemplating taking on your next project in the buy-to-let market or if you’re an existing investor awaiting your next move, have a read of our top tips to ensure that you’ve got the best advice to assist you in the process:

Research is paramount

Taking the time to conduct research into changes regarding the financial aspect of your investment, including tax changes, is a wise decision. You should consider researching how this investment works for you in terms of income or profit. However, be certain to assess the responsibilities and obligations that you will inherit if you should become a new landlord.

Subsequent to conducting this research, you should be far more educated about the current state of the market. In addition, you will possess sufficient knowledge about particular investments, putting you in a better position when deciding whether investment in a buy-to-let property is right for you. To be sure of this, you should consider monitoring new updates and related discussions relating to the buy-to-let market. This will provide you with regularly updated information about how these issues could affect you and your potential investment.

Ensuring your property is as successful as possible can be a result of forward planning

Is the property you’re investing in right for you?

 The idea of something can be far more desirable than the thing itself. This is why it is imperative to conduct research around the property investment itself, rather than the idea of it. Be sure to research different property types in the area and consider what features these properties have which will definitely attract reliable, long term tenants and be a successful BTL investment. Making a checklist about what tenants prefer in their rental properties. Read more here on the features and facilities that are likely to entice potential tenants.

Only the best

Searching for the best mortgage deal is a very wise decision. One of the biggest mistakes made by investors is simply going to their local bank and asking for a mortgage. Although this may seem like the only method to get a mortgage, there are alternative ways which could save you money. Some banks will sell financial products which will potentially be overpriced or that may not align with your investment plans.

Calculations

Though during this process there are many figures requiring your attention, it is important that the rental yield of your property is your prioritised figure. This is what you should be focusing on when taking into account, how much income you can generate as a percentage of the cost of the property and is used throughout the buy-to-let property market. To put things into perspective, a 10% rental yield on a £100,000 property would be a return of £10,000, whereas a 5% yield on a £250,000 property would be a return of £12,500. While the second property with a yield of 5% returned slightly more income overall, the first property is a much better investment when you include the value of the properties.

By Renee Simone Wells