Buy to let
With continuing low interest rates, you may be considering buying a property to let. If so, read our advice below:
1. Review your finances
Speak with your broker and/or accountant and work out the costs and implications of borrowing. You need ensure that you will be able to cover any mortgage repayments in the event that your property is sitting empty for any period of time.
2. Do your research
Look for up and coming areas and research them carefully. Use the internet to check for any planning applications, investment in the area, schooling and transport, etc., in fact anything that may increase desirability and push up rental.
3. Local or further afield?
If you are intending to manage the property yourself, consider staying fairly local as you don't want to increase your costs by driving for miles to visit the property for maintenance purposes, etc. However, if you are prepared to pay agents to manage the property for you, then you could look further afield.
4. Consider a tenanted property
You could look to buy a property with an existing tenant. This is a hassle free alternative to buying with vacant possession as the tenant already has a proven payment record, there is no rental void, no hassle trying to find suitable tenants, and little or no capital needs to be spent on improving the property as the tenant is usually happy with it in its existing state.
5. Auctioned properties
Repossessed properties sold at auction often need work doing to them before they are rentable, but the costs of this can be far outweighed by the bargain price you can potentially pick them up for.
To speak to an independent financial adviser, visit our financial services page