Location, Location, Location
Focus on finding out which cities have the best long-term growth in terms of house prices and other economic factors. After choosing a city, narrow down your locale even further. Look at local amenities; are there nearby shops and bars? Is it near a frequent bus route or train station? Is it within walking distance to the business centre? Consider the quality of the neighbourhood, is it run down and lacking in investment or is it an up-and-coming area that could see growth in the next few years?
As well as outside of the building, think about what is included inside. Apartments that come with a concierge service, onsite gym and communal garden areas are increasingly important to renters, and as such, have a higher demand. In terms of location and amenities, you should be seeing your investment as somebody’s home rather than a cash cow. Invest in a property that tenants would be happy to live in and in return you’ll attract tenants that look after the property and pay their rent for many months and years to come.
Get the Best Mortgage Deal
There are plenty of buy-to-let mortgage products on the market these days… investors who are using a mortgage for their buy-to-let property purchase have plenty of choice over the terms of their borrowing.
Budget for Unexpected Costs
Since the Tenant Fees ban came into force in June, landlords are under pressure to absorb even more costs including letting agency fees. Understanding from the outset what these costs might be is an essential part of calculating your likely yields and the development’s ongoing viability.
Source: Landlord News, By Simon Clarke from Acentus Real Estate.