Buy to Let | Buy to Let |
Page 2 of 2  Meet all the estate agents in the area even the undesirable ones, some investors only speak to those they like the look of and miss out on potential bargains.Visit as many properties as possible – The perfect property is hard to find – some experience landlords visit up to 25 properties before finding the right property. Make sure your surveyor does a thorough inspection of the property. As a Landlord, you will be liable for all maintenance so make sure to know about all potential problems. When you finally find a property - negotiate. Some sellers may drop the price if it means a quick sale. When looking at a property you should ask questions about the seller’s position. Ensure you know the real value of the rental income you can secure from your chosen property. Letting agents can sometimes exaggerate rental yields, so contact them as a potential tenant looking for a property similar to yours to get the truth. Don’t consider buying a property until you are sure you can generate sufficient rental income to ensure you can pay your mortgage and ‘service’ the property. Make sure you have a plan in place which protects you against sharp interest rate rises and rental voids for example, sufficient rental income after paying off the mortgage each month to have an emergency fund. To get the highest yield from your investment, shop around for the most competitive mortgage deal. Look at the tax advantages offered by the various types of mortgages - Mortgage Interest payments can be offset as an expense against rental income for tax purposes so you should consider this. Read the fine print – Make sure you understand any redemption penalties or deed release fees, which apply to your potential mortgage. |
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