Blog
Buy-to-Let: Key Investment Tips
Thursday, May 26, 2016
Demand for rental properties is predicted to rise significantly with just 47% of those born in 1990 likely to be a homeowner by age 40. With low interest rates and volatile stock markets making other investments unattractive, buy to let is still a popular long term option. But with additional stamp duty and reduced tax benefits, it’s vital to get it right. So if you’re looking for advice on Buy to Let, consider these key tips.
Mortgage rates are low but do your research, shop around and speak to an independent broker. Factor in maintenance costs and make sure your investment will work even if rates change or your tenant becomes unable to pay their rent. A FREE 12 month rent guarantee and legal protection cover is a popular reason for letting your property through The Frost Partnership. We are one of the few agents in the UK to offer this type of protection for a full 12 month period so you can relax, knowing that your rental income is covered.
Location is crucial for tenant numbers and quality and for potential capital growth - the extra factor in buy to let investment. With dedicated Sales and Lettings teams in branch, Frosts can advise which areas provide good returns and help you find suitable properties within budget. Often people invest close to where they live - they know the area and can keep an eye on the property. But it may be worth looking further afield. With our 15 office network of linked local offices we can search across Middlesex, Berkshire and Buckinghamshire for towns with good commuting or areas popular with families. It is also worth looking at properties needing improvement; by adding value to a property you have an immediate safety margin on your investment.
Think about your tenants. If they are young professionals they’ll want style and convenience, whereas families need space. Do you want to be hands on or opt for full property management? Agents charge management fees, but solve problems if things go wrong. Tenants are often prepared to pay a premium for a managed property or one with tangible benefits. Enhancing a property wisely can pay dividends and we can advise on what is likely to be worthwhile.
As with any investment, it’s important to weigh up your options before you commit. For more advice on all aspects of Buy to Let and the legal, health and safety responsibilities of being a landlord contact your local Frost office .
