Buy-To-Rent Best Practice – Welcome to the exciting world of property investment
It sounds very simple…. For property to be a good investment, you need to make more money from it than you spend, however in practice its not always that simple. Buy-to-rent is one of the most established and reliable ways of growing capital, both as a means of boosting earnings and as a retirement plan.
If you are new to property investment, it can be tough to know where to start. That’s why Surrenden produced regular reports such as this helpful guide to investing in UK property. We’ll cover everything from the different types of property investment to industry terminology, along with historical property market trends, current hotspots, regional demographics and some property investment best practices.
If you’re considering investing in property for the first time, read on!
Buy-To-Rent Best Practice
If you are considering a buy to rent investment, it’s time to start researching. Property investment consultancies can help here, as they will have plenty of local area knowledge, but it’s essential to undertake your own research too. This should cover everything from the buy-to-rent mortgage options that are most suited to you, to your responsibilities as a landlord, to detailed analysis of the areas in which you are considering for investment.
That means getting under the skin of each location and finding out about its property market, recent and planned regeneration work, population growth, visitor numbers, upcoming infrastructure projects, rental market demand and yields – anything and everything that can help to inform your decision regarding in which area and which particular property you should invest in.
2. MAKE LIFE EASIER FOR YOURSELF
It is entirely possibly to buy a resale home, refurbish it, furnish it, marketing it and rent it out yourself. However, few people have the time and energy to take this approach. That is why most new build developments come with the option to purchase a furniture pack and to use a turn key management solution. These are particularly useful to first time investors looking to ease their way into the buy-to-rent sector as smoothly as possible. Just remember to do your research here too and check out the management company before you commit to using them.
That does not mean you should only invest in your hometown – rather that it is worth getting to know the place(s) in which you plan to put your money. Researching an area from the comfort of your desk or sofa is important, but it cannot deliver that instinctive feel that you get for a place when you go there in person and look around it.
4. KNOW YOUR INVESTMENT CONSULTANCY
Just as you need to check out your investment location in detail, you need to find out all you can about the consultancy with which you are considering investing with. That means speaking to them by phone and establishing how knowledgeable they are about the UK property market. If that process leaves you with any qualms, move on until you find a consultancy that gives you full confidence. Read testimonials and reviews as well – not just on the agency’s website, but elsewhere on the web and ask what percentage of their clients reinvest with them – if it’s zero, then that’s a big warning sign.
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