If you have the means and desire to buy to rent, you have a chance to enjoy suitable returns.
However, the buy to let market isn’t without risk. Even in an area like Streatham, it is vital to do your research and give yourself the best chance of success. At Holmes Estate Agents, we know the local market, and we have helped many investors and landlords. If you’re looking for property investment tips, we are here to assist you.
Plan your budget
One of the most critical steps for any investment is knowing your budget and sticking to it. Review your finances and be aware of your cash flow. There are many costs associated with buying and then letting property, and many issues can rise out of the blue. Therefore, you need to be confident that you can afford a deposit, to make monthly payments on the mortgage, to maintain the house and take care of administrative duties when it comes to property investment.
Don’t underestimate running costs
Following on from the need to plan your budget, it is vital that investors consider the on-going expenses of letting property. Most landlords are aware they need to undertake maintenance and carry out general repairs at their rental dwelling, but there are other costs to consider. There are rates to pay, you will need insurance for the property, and there is a lot of paperwork involved with being a landlord. It is vital that you know all the potential costs and that you budget accordingly.
Look for a growth area
The phrase “location, location, location” has been over-used concerning property purchases, but this is because it is vital you find the right area to purchase the property. You need to find an area where there is demand for rental property. Factors to look out for in the local area include schools, transport hubs, leisure areas and a generally welcoming atmosphere.
Have realistic goals
There is nothing wrong with being ambitious but you must also be realistic when it comes to property goals. It is vital you consider rental yields for the local area and that you know how much of a return you can expect to earn. If you need to make a specific figure each month or each year, this should dictate your actions in the rental market.
Get help from the experts
While there is a lot to be said for being hands-on and proactive, there will be times when you need to rely on the experts for support and guidance. You could carry out maintenance work yourself, but if you are unqualified and inexperienced, you make matters worse. It is usually best to call on experienced professionals.
When it comes to finding your ideal rental accommodation or property management service provider, you’ll see that Holmes Estate Agents are the experts you can trust. If you are looking to invest in property, get in touch, and we’ll be more than happy to assist you.