What to watch out for in a buy-to-let investment

We have always known that the London property market offers excellent opportunities for buy-to-let investors, but success is not guaranteed and it’s not a case of simply buying the first property that becomes available. If you’re planning to invest in a property in the capital, you need to know you’re spending your money in the right areas and on the best possible properties to secure optimum returns.

As a team of professional and experienced property specialists, we regularly advise investors and help them to make the right decisions when it comes to adding onto their portfolio. Here are some of our tips for qualities to watch out for when you’re considering making a buy-to-let investment.

Potential for high returns. You want to make sure the property you buy will not require huge initial investments to get it up to scratch, so unless you’re prepared for a major project, look for properties which are in excellent condition and ready for tenants to move in. It’s crucial to balance up how much initial investment will be needed with the potential for profit afterwards.

Desirability. If you choose a property which is in a sought-after area, close to local amenities and transport links, you will have access to a wider pool of prospective tenants and a better chance of securing a higher return.

Potential for growth. Investing in an up-and-coming area could really pay off in the future as your property will be more likely to increase in value, so make sure to look to the long term as well as the present. With our experience of the property market in Croydon and throughout the rest of the capital, we are in the perfect position to make predictions and advise you on this.

Management and maintenance. Will it take up a lot of your time and money to manage the property and keep it in good condition? Does it seem likely that repairs and maintenance will be needed in the near future? As an investor, the lower the maintenance requirements, the easier your role will be. However, when you have a professional property management team handling everything for you, such as ours, it will become much simpler to keep track of maintenance requirements.