Buy-to-let is an attractive option for many who are looking to invest in London property; homes are in high demand in the capital so you will never be short of prospective tenants. Investing in any sort of property is an important decision and one that should not be taken lightly. Here are our tips for investors who are interested in buying a property to let.
- Research the market. Educate yourself about the risks faced by landlords, as well as the benefits, so you’ll be prepared for any eventualities that may arise. Is buy-to-let really the right option for you, or are there other kinds of property investments which could be more beneficial for your money?
- It’s crucial to find out how much rent you can expect to achieve so you have a realistic idea of the money you’re going to be making on your investment.
- Talk to other investors, either in person or online, about their experiences. There are many forums and message boards online where you may be able to gather useful advice from people who have been there.
- Choose an area where people want to live. Think about what is in the area – are there good transport links, a lot of places of cultural interest, great schools, is it in close proximity to a university? Choosing the right area is absolutely crucial to ensure success in your buy-to-let investment.
- Following on from the last point, think about the types of tenants you’re going to be dealing with. Families, students, young professionals and other types of tenants will have different requirements and want to be in different areas of the city. As just a small example, Greenwich is popular with professionals, commuters and families, Kensington and Chelsea attracts the well-off who are in search of luxurious homes, and Shoreditch appeals to students and creative people. Each area of London has its own distinct character and will attract a different type of prospective tenant, so it’s important that you know who you are targeting.
- Think about how much work you want to do yourself. Are you planning to be a very hands-on landlord and take care of matters like viewings, inspections and paperwork yourself, or will you hand over the reins to a property management company like Finefair?