If you have never invested in property before but you’re interested in the process and would like to learn more; now’s your chance. When it comes to finding the right property, financing the investment and finding good tenants, there’s a lot to learn, but if you’re passionate about property and you’re dedicated to your investment, you should be able to learn everything you need to learn in not too long of a time, and then you can begin your journey into your first investment. So, without further ado, here’s a guide to buy to let for first-time investors.
Financing the Investment
Before you even so much as look at a house that you’re going to invest in, you need to consider how you’re going to finance it. If you have a large amount of cash sat in the bank that you’ve earned or come into the possession of, you don’t necessarily have to worry about where you’re getting your money from. However, if you’re not so fortunate, you’ll need to consider alternative financing options. Look for buy to let mortgages, take advantage of schemes like the government’s Help to Buy project, and read up on the pros and cons of financing a buy to let property on a site like HomeLet. By doing this, you’ll be able to really know if you’re wasting your time at house viewings or doing further research.
The Right Property
Once you know whether you’re going to be able to afford the investment, you’re ready to start looking for the right property to invest in that you can then lease out. There are a number of factors that you need to consider – with price being the obvious one – to less obvious ones like the inherent rise or fall of value in the houses of the local area, the overall quality of the property itself and the socioeconomic demographic of the people who live in the local area. This last point is essential, as if you’re looking to be a student landlord; you’ll obviously need to ensure the property you invest in is in a student area of a university town/city.
The Right Tenants
Following on from the last point, ensuring that you find the right tenants for your property to ensure that they take good care of your investment, and also so that they pay the bills on time. After all, you’re looking to get a consistent return on the investment you’ve made, so the right tenants are important.