- Have you researched the UK market and Buy-to-Let sufficiently? What type of property are you looking for?
- Have you chosen, researched and visited a location? It’s a good idea to go there in person and get a feel for your chosen development and the surroundings.
- Are you looking for strong rental yield performance? If so, how much do you want to achieve?
- Are you a cash buyer or will you require a mortgage?
- How long would you be looking to hold on to the investment for – are you adopting a holding pattern?
- Have you researched or spoken to the sourcer or estate agent?
- Do you have a strategy? Would you prefer long-term passive income or short-term capital growth?
- What tenant demographic are you looking to target with your investment?
Buy-to-Let Best Practices
- DO seek specialist advice from expert property consultants, mortgage or tax advisors when considering finances.
- DO have a proper financial plan and goal in place. Know what you want to achieve beforehand and maintain due diligence throughout.
- DO consider if your investment is future proof – regeneration projects can significantly boost rental yields and capital growth.
- DO understand that Buy-to-Let investment typically works better over a medium to long-term strategy.
- DO speak to local lettings agents – they’ll have specific knowledge about your potential investment area.
- DON’T purchase a property that requires an unspecified amount of maintenance or refurbishment.
- DON’T treat the property as your home. Ensure your property meets requirements and don’t cut corners.
- DON’T let emotions get in the way. Use logic to dictate how you proceed
- DON’T always opt for lower cost – quality developments attract quality tenants and always stands the test of time.
- DON’T underestimate the power of amenities within a development. On-site facilities such as gyms and workspaces can attract premium tenants.
5 Reason to Invest in Buy-to-Let
1. Accessible Investment
Property investment is more accessible than many other assets – there’s no complicated jargon and it’s relatively secure compared to other classes.
2. Potential for Profitability
As an asset class, property can fit into any portfolio and supplement a pension or retirement savings.
3. Strong Market Conditions
The UK private rented sector is currently the fastest growing property sub sector, worth an estimated £1.5 trillion.
4. Two Income Streams
Property presents a unique opportunity to discover two potential returns – rental income and capital growth.
5. Long-Term Success
As a long-term investment, UK Buy-to-Let property has historically doubled in value over a 15-year period.