Investing in real estate could be a great way to make a profit, particularly when you take into account the low interest rate and the risk of entering the stock market. With property you have the advantage of owning a solid asset that you can sell in the future. If the price isn’t right at the time or you can’t find a buyer you can choose to rent instead and accept a smaller, steady income until the market improves.
Buying a property to let isn’t as easy as it sounds, and you need to think everything through carefully before you rush in and buy. You’ll need to keep in mind what you need to do to be successful and attract tenants. There is no point buying a home that you won’t have a chance of letting or one that tenants won’t want to live in. We specialise in property purchases and estate management in Newham and all other areas of London, and are on hand to help you make the right choices before you purchase a buy to let property. Here are some important things to consider to help make your rental property successful and profitable.
The first thing to think about is location. Tenants will queue up to rent properties in the best locations, even if they have to compromise on space in the process. The type of tenants you attract will also be affected by the area so you need to think carefully about who you want to attract. If you want to appeal to families you should make sure the property is in a safe area close to schools and open spaces.
After the location ,you need to consider the actual property itself. You should have a good idea of the type of tenants you want so you can get a picture of what you will need from the property in terms of size, number of bedrooms and other facilities. Again if you’re looking to attract families you’ll want to provide a property in a condition that will make people want to rent for a long time, ensuring long and profitable tenancies with minimal stress.
With rental properties, you’ll always need to prepare for the inevitable end of tenancies. The dream scenario is to let to tenants that will look after the property and live in it for a long time but this can be tricky to find. If the property is intended for students you’ll need to keep on top of the maintenance and will have more frequent tenancy changes to deal with.
When considering purchasing a property to let, you should look at the market in the area so you can work out the real value of the property and how much you could demand in rent. You should also choose properties that have potential for the future; the best properties will go up in value over time and only require a few cosmetic changes to increase their worth.