Buy-to-let investments

Buy-to-let tends to be an investment used as a source of income or an alternative pension provider/top up. The property is normally bought with a buy-to-let mortgage or can be bought outright. The subsequent rent charged to tenants covers any loan repayments and maintenance costs – monies left can be taken as profit (and are subject to tax). In the long run the property itself is also an investment and should its price rise, capital growth will also be realised when it is sold.

Why are buy-to-lets such a popular investment?

With interest rates offered by the banks being so low and demand for rental property being so high, it is no surprise that buy-to-let is a popular investment option. We are certainly seeing a rise in buy-to-let enquiries every month, with people from all walks of life investigating the possibilities. Many of our clients are currently benefiting from 85% ‘buy-to-let’ mortgages and receiving an average yield of 7% or more per annum. It is easy to see why this is an investment worth considering.

We have specialists that can help with all the facets associated with buy-to-let investments. Please call 0333 7000 828 for more information or visit one of our branches. Here are a few pointers to get you started.

Run through your calculations

You should first sit with one of our financial advisors before you look at potential properties to invest in. They will be able to show you the latest mortgage products and run through associated taxes and costs, to make sure all expenses are covered and a return is made.

Also speak to one of our lettings managers who will show you current rents vs property types. They will also explain running costs and ways to minimise void months (when the property is empty) thus establishing best and worst case scenarios.  In this way you will know what you are buying into and can identify the most profitable type of property in the current market.

Imagine who your target tenant is

When choosing your perfect investment property, you should put yourself in the tenants’ shoes. Think about what they will want from the accommodation and its location, not what you would be looking for if you lived there.

If you purchase a flat your target tenants may be young professionals looking for a modern, stylish look and possibly fully furnished accommodation. If it is a house, then a family is more likely to require space for their own belongings and will not need furnishings.

Local area knowledge is also key to your selection. If you know the area, then you will easily identify the most popular parts. Again think about your future tenants’ requirements. Will they need shops within walking distance, good schools or commuter links into London? If you're unsure, one of lettings managers will advise you on the most popular areas with high demand by tenants. 

Consider how hands-on you want to be

Decide how much personal involvement you wish to have with the tenants and the property. On the one hand you may wish to collect rent and deal with any running repairs yourself, alternatively most people prefer to stay at arms length, paying a management fee to one of our letting centres, who will take care of everything for you from top to bottom.

Tenants are requesting managed properties

We are finding that more and more landlords are opting for property management. This is probably because they want less hassle or because tenants seem to only consider to rent that are managed by an agency. This is a growing trend, but you can see why – tenants want the convenience and guarantee that if something goes wrong, repairs such as plumbing or electrics will be carried out immediately. And what's more tenants don't mind paying a premium rent for this peace of mind and they tend to stay longer.

How can we help you?

If you are interested in buy-to-let opportunities or are looking to grow your existing investment portfolio, we will be able to help you find the perfect property. We will bring together our sales and lettings manager in order to offer the best advice in terms of the right investment for you. We can find the right property investment, your first tenants and then manage the property for you so every month you can sit back and simply enjoy the income.  

If you are interested in a buy-to-let investment, call us on 0333 7000 828 or visit one of our branches. You can also register with us online by clicking this link.