Buy-To-Let Investment: Back to Basics - Nova
downArrow

Choosing to purchase property for rental is a big decision, but it can turn out to be one of your best investments. The buy-to-let sector is a huge opportunity, with significant growth in the number of prospective tenants throughout the UK making this an appealing option. Let’s take a closer look at a few top tips for ensuring your buy-to-let investment works for you…

Why buy-to-let?
For those with the money to raise the deposit, buy-to-let presents ample opportunity to become a landlord. Tenants are on the rise, with fewer domestic purchases and a more mobile workforce. It’s understandable that of all the investment opportunities available, there is a certain reliability about bricks and mortar which continues to impress – however as with any new investment, it is encouraged that you proceed with caution.

Select your investment area with care
Be careful not to be seduced by price alone – as a prospective landlord, you need to search for areas and properties where people want to live. This then must match up with your financial constraints to create the perfect buy-to-let conditions. For instance, is the location expecting sustainable long-term growth? Is there an attractive tenant pool? Are there any infrastructure changes currently taking place? All of these might sound like simplistic questions but answering them will get you one step closer to selecting the right buy-to-let property.

Who is your dream tenant?
It’s vital to get into the mindset of a prospective tenant, rather than becoming too fixated on where you would like to live. Are you hoping to appeal to young professionals, or growing families? These demographics require vastly different things from a rental property – and will also help you get a clearer idea of how long your tenants are likely to stay in the property.

Research your options
Buy-to-let is still an attractive investment, but it’s getting more difficult. New taxation rules on buy-to-let mortgages have had an impact on the market as a whole, though Brits are still flocking to this valuable means of creating capital. Mortgages for buy-to-let are traditionally cheap, though investors need to remain aware of the impact interest rates and stamp duty will have on their house price – as well as the rental value of their new home. Adequate research is extra-important if you’re new to the buy-to-let market, as you need to be aware of both the benefits and all the potential risks. Property investment is the right choice for many people, providing capital gains and a consistent income, but always be sure of what you’re signing up for and seek professional advice before you sign on the dotted line.

Nova News

Manchester – Economy, Growth and Demand
Manchester – Economy, Growth and Demand
by Saeid Ansari
read more
Replacing Space for Place
Replacing Space for Place
by Chris Downe
read more
The Reducing Tolerance for a Long Commute
The Reducing Tolerance for a Long Commute
by Joseph Hegarty
read more
Demand for Commercial Properties in Manchester Drive Up Property Prices in the City
Demand for Commercial Properties in Manchester Drive Up Property Prices in the City
by Saeid Ansari
read more
Leading the Way for New Build Property
Leading the Way for New Build Property
by Joseph Hegarty
read more
Want to be the first to know what’s going on in the world of property investment? Subscribe to our newsletter below.
The property pension plan book icon

Take Control Of Your Future With Buy To Let Investment, get The Property Pension Plan for Free!

Find Out More
Get in Touch

Book a complimentary property and/or finance consultation

back-to-top