Don't Purchase A Buy To Let Until You've Watched This Video!
Hi everybody, it’s Katie from Principal Properties.
If you are considering purchasing a buy to let property I strongly advise you don’t until you’ve watched this little handy guide on things to consider first.
Have you been to see an independent regulated adviser? Have you had the correct mortgage advice? Do you need a buy to let mortgage? Do you have a slush for any maintenance or repairs that may crop up, or to cover any void periods? Are you buying a property that requires some work or minor modernisation before it goes on the rental market, if so you will need some additional money which will need to be factored into the budget? You will require landlords insurance, so again make sure this is factored into the budget.
What sort of location are you looking for? In town or just outside of town? Close to a school? Close to transport links? Close to local amenities? This would all depend on the type of tenants you want to attract to rent the property, for example a 3 bedroom house near the local school will attract a family. If you are not planning to live in the property don’t just stick to areas you would consider.
3. Type of property
Again this would depend on the type of tenants you want to attract, if you purchase a 3 or 4 bed semi detached or detached house with a garden, the type of tenants looking for this type of property are families normally with a pet of some kind. If you don’t want pets within the property I would advise you not to purchase a property with a garden. A flat or studio apartment near a university and transport links will attract a student.
4. Level of service
The final point to consider is what level of service you wish to have for the tenancy, full management, rent collection or let only? I would strongly suggest you go and speak to a letting agent before you purchase a property, most agents are happy to look at sale brochures to give you an expect rental price, type of tenants the property will attract and roughly how long they believe the property will take to rent. With regards to managing the property yourself, are you up to date on all current legislation? Do you live locally? Have you got a list of contractors locally to the property that can do jobs for you? I don’t know if you are aware but there are over 100 pieces of legislation and regulation affecting landlords and these are constantly changing, a slight slip could land you with a huge fine or six months in jail. I don’t wish to scare you as there are landlords out there managing their properties and doing a great job. I would always suggest you go and see your local letting agent before you buy a property.
Thank you for watching.