- Compare quotes for buy-to-let mortgages
Follow in the footprints of a Prince
He might be next in line to the British throne but that hasn't stopped Prince Charles and wife Camilla snapping up the opportunity to take advantage of the UK's booming Buy-to-Let market.
The Prince's most recent acquisition, a modest farmhouse in the tiny hamlet of Myddfai, Wales, has been earmarked as an investment property for the royal, with plans in place to let it out to Welsh holiday makers.
Whilst many might question the motives for the royal family's latest business venture, we can only assume the Prince's investment plans are just another vote of confidence for the booming British buy-to-let property market.
Now - if, like Charles, you are ready to bite the bullet and jump on the property investment bandwagon, you would be best served to read on for five essential tips to becoming a successful, profitable landlord. Whilst Charles is unlikely to be lining up at the Salvo's for a feed this Christmas if his Welsh investment plans go Pete Tong, we are pretty sure you want to get your property investment plans off to the best possible start!
1. Money to buy
Unless you are a prince, you're likely to need to borrow funds for your buy-to-let investment. Typically, many would-be property investors leave sorting out the funding until the very last minute - lets face it, it is nowhere near as much fun as searching for your property to purchase. However, smarter property investors source mortgage quotes before they jump into the property search. Sourcing a quote early on in the piece will give you spending guidelines and save you disappointment (and possible embarrassment) when you realize the property you really want to buy is outside your spending bracket. Get a personalised buy-to-let mortgage quote
2. Location
Now you know how much money you can spend, it is time for step 2 - the property hunt. Tempting as it may be to plump for the familiar, your local area may not offer the best returns. Look for an area where properties in your price range offer the best rental yields. How far afield you would be prepared to consider will depend on how much control you want to have.
3. Control
You will need to consider how much time you can dedicate to seeking tenants and conducting repairs. For a fee you can hire a lettings agent to take control of every step of the rental process. Should you opt for an agent, seek one who takes a low fee and consider taking on part of the work yourself if you want to save money.
4. Target audience
Consider your target audience. Students will want simple, furnished accommodation within walking distance of local amenities, pubs and clubs. Most families will aspire to a spacious, unfurnished home in a safe neighborhood, while professionals will want functioning simplicity with good transport links.
5. Prepare
Prepare for the worst. Consider the consequences of your buy-to-let property remaining empty for two months. If this lack of income will land you in serious trouble, you may have to re-evaluate. The 'unexpected costs' of purchasing buy-to-let properties are often forgotten too. Some of these costs include;
- Landlords insurance (regular home and contents insurance DOES NOT cover buy-to-let properties),
- Repairs on the house (including a paint job)
- Furnishing the house.
Compare landlord's insurance quotes from the UK's most reputable insurance companies
