Is Buy-to-Let Still Lucrative?

Posted on June 30, 2019

Once billed as a guaranteed money maker for individuals looking to supplement their incomes and seasoned property investors, buy-to-let hasn’t been portrayed in the best light in recent years. Investing in property is more difficult than it was before due to the stamp duty crackdown on property investments, stalled house prices, and the income tax raid on rent. But with buy-to-let mortgage rates lower than ever before, investing in bricks and mortar could still be a lucrative step forward. All you need is the right advice…

As specialists in sales and lettings, we help people find the properties that are right for them. We also work closely with and represent landlords to ensure they make the most of their property investments, whether it’s their first brush with buy-to-let or they have a diverse property portfolio. Here we reveal the essentials of buy-to-let investment so you can begin to set yourself up for a more financially secure future.

Market research is key

Before you part with your hard earned cash and invest in that property you’ve had your eye on, make sure you research the market thoroughly. Whilst there are many benefits to buy-to-let, there are also a number of risks.

Be aware of both the plus-points and drawbacks to ensure you enter the market with your eyes wide open. Analyse the latest market statistics to discover the annual returns that are possible and see how they compare to other investment opportunities. Make sure buy-to-let adds up for you by looking at the property market and doing the maths with buy-to-let mortgage products.

Choose the right area

Location matters just as much to tenants as it does to buyers, which makes choosing a great area to invest in essential. Finding a promising area will set you up for success. But that doesn’t mean buying a buy-to-let property in the most expensive part of town or snapping up a bargain in the cheapest.

We recently shared our tips for investing in an up and coming area, and you can use this advice to find an area that’s appealing to potential tenants. Properties on commuter belts, within areas of development, and close to good schools, universities or hospitals usually provide great rental potential. Once you’ve found an area that you love, think about whether your tenant will love it too. Having a target tenant in mind will make finding a property in a promising area even easier.

Consider your options

There are so many options when investing in buy-to-let. Many investors choose to find a property near to where they live to ensure they can be a hands-on landlord. Others cast their net a little further afield to find the promising areas that we discussed earlier. Properties that require some improvement before going onto the rental market are another great option that will provide excellent return on investment later down the line.

Whatever your preference, letting a property is a huge step. You can find the support you need to make buy-to-let work for you by getting in touch with our team today. We provide personalised and flexible property management packages, each of which guarantees an uncompromised service at the best possible price.