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The key to successful buy to let property investment is research - and lots of it. Whether you search for your ideal buy to let property online, through an estate agent, at an auction or in your local newspaper, be prepared to be put in time and effort to find the right location. Smartlandlord can help you with buying tenanted property, property auctions and repossessions and with off-plan property investments.
Look not just at high yield, high capital growth areas that are likely to already attract competition from other landlords, but at local infrastructure - schools, shops, public transport, roads, hospitals -, planned developments and regeneration schemes. Keep an eye on your exit strategy as well. Although you may want to purchase a buy to let property now, you will need to consider selling the property again at some point.
You can get a good idea of the approximate value of a property by looking at similar properties in the area in newspapers, estate agent windows or by visiting property websites. A chat with an estate agent or - even better - a letting agent can also pay dividends. Ensure that your own agent is registered with a recognised body, such as the National Association of Estate Agents (NAEA).
An estate agent can also provide you with a formal estimate of the property's market value, although you may be charged for this. The Land Registry website contains extensive data on all property sold in the UK, including the type of property and the sale price.
Don't let your personal taste get in the way of a good property investment opportunity. Stick to your budget, however appealing a more expensive property may be. Avoid property likely to need a lot of maintenance, unless you are prepared to invest in doing it up. Before you buy, instruct a Chartered Surveyor to conduct a survey of the property to ensure that there are no hidden extra repair costs.
If your property is mortgaged, you will need to obtain written permission from your mortgage provider before you can let the property. Specialist buy to let mortgages are usually slightly more expensive than ordinary home loans, but specifically cover tenanted properties.
Finally, it is worth remembering that property prices have risen by more than 60 per cent in the last five years. Despite dips from time to time, medium to long-term prospects for property investment are still healthy.
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