Buy to let properties | Important considerations for buy to let properties from Charlton Grace
In modern Britain, the rental market is currently booming because many people have been priced out of the housing market. If you are thinking of buying a property to let then there are a few important considerations to make. As well as utilising Charlton Grace in Basingstoke to help find suitable tenants, profit, location and possible risks are all important factors to think about.
One of the most important factors when purchasing a buy to let property is the state of the market. Whilst the rental sector may be booming in Britain, you need to ensure that there is housing demand in the region where you are buying. Looking for signs of economic growth, business developments and community housing demands is important in ensuring that if you buy a house, you will be able to let it.
It is also vital to think about the needs of your clients. For example, whilst you may be happy to drive twenty minutes to the nearest railway station, tenants may want stations within quick walking distance. Meanwhile, consider the locations of shops, hospitals and schools, so that tenants will be attracted to the area and not just your property.
Part of becoming a landlord is also to make a profit, and you need to ensure that you can get an average 12% – 15% net yield from a home. Be careful not to overspend on a property as this could result in you needing high rental rates, which may simply not be viable in the area in which you have bought. Lastly, you should also factor in that your rental property will be vacant for some of the time, so you will need some contingency funds to cover mortgages for these periods.
Subscribe to our e-mail newsletter to receive updates.