Making the most of your money: A checklist for buy-to-let investors
Although they're not quite seen as the money making machine that they once were following the UK's recent financial struggles, buy-to-let properties
are still an attractive proposition for some investors.
While there are short-term risks with property prices potentially falling further over the next 12 months, the purchase of properties to rent can still offer
a viable long-term investment. With that in mind, what follows is a five point checklist for anyone looking to enter the market.
Do your research
If you're new to the business of buy-to-let then make sure you know as much as you can about the benefits and potential pitfalls of this type of
investment. Also be sure that this is the most efficient use of your money Â¬- depending on how far into the future you're planning, you might be better
off making use of a fixed rate savings account.
Predict the future
It's all very well choosing an area that has proven a popular destination for buy-to-let investors - but if you can identify an up-and-coming area with
plenty of attractive aspects that appeal to renters then all the better. Things to look out for when picking an area include efficient transport links and
well-respected schools and/or colleges.
Many buy-to-let newcomers will try to find a property near to where they're based to keep things simple logistically. It's often best to check out all
available options, however; by looking further afield you're increasing your chances of finding the perfect buy-to-let property. Not being close to the
property you buy doesn't need to be a negative; your agent will happily keep an eye on the house at your request.
Make your choice
Don't make the mistake of picking a property that you would like to live in yourself. Who are you looking to attract? Families? Students? Young
professionals? Work out what type of tenant you're aiming to market to and then find a property to suit that person's likely needs.