Four tips to add to your buy to let armour
As a buy-to-let landlord, there is no limit to the amount of knowledge you should have in your lettings bank, from a complete understanding of the basics to in-depth knowledge of regional variations, as well as keeping abreast of any changes as and when they happen. With the rental market in Bath flourishing, there is no better time to add some more tips to your buy-to-let armour.
Property markets can change and it doesn’t take the uncertainty of Brexit to have an impact on what might happen. It is therefore essential to do your research – and we’re not just talking about the property values, you also need to look into forecasts and potential rental yields. You may have an idea of the location you would prefer to purchase in, but are properties there achieving the highest yields?
The time you invest in researching a buy-to-let can also be extremely important, which is why it’s always good to chat with an expert who will be able to give you the big picture. Having worked in the lettings market in Bath for many years, we can tell you how an area has performed, the areas on the up and those we feel have reached their peak.
Getting the right finance
It’s all very well finding the right property, but when it comes to an investment you also need to have the right financing in place. Lenders’ criteria can make finding the best mortgage a challenge, which is why it’s essential to work with a broker who is experienced in the buy-to-let market. As interest rates remain low at present, there are still a number of options for interest-only mortgages. There are some great loan-to-value ratios out there, you just need the right broker to guide you through the maze.
Consider your options
Before you invest in a property it is worth considering and investigating all the options available to you. You may decide that an HMO is a more profitable alternative if it is located centrally and provides a high standard of living. Again, don’t jump in without getting an overview of what the rental market is demanding – although an HMO may be great on paper, if tenants in the area are looking for something different you could be setting yourself up to fail.
Eye on the ball
Just because you know what you need to do today, doesn’t mean you can take your eye off the ball. When it comes to lettings, nothing surprises us anymore. Changes in legislation happen often and sometimes take a direction you had never expected, this can cause the lettings landscape to shift dramatically overnight. Before you jump into an investment, make sure you thoroughly understand your responsibilities and always keep up to date with what the market is doing. If you are unsure, at The Apartment Company we are always happy to provide guidance so you are setting out on the right path.
You can succeed in the Bath buy-to-let market if you arm yourself with as much knowledge as possible. If you would like more information on buy-to-let, contact our lettings team today.