Property is one of the biggest investments the vast majority of people will ever make, and some people are exploring ways in which this investment will ultimately pay for itself, which dedicated local estate agents will eagerly help with.
The most direct way to do so is through buying a property specifically to rent it out to someone else, often known as buy-to-let.
If the right property is chosen at the right price, this can be an ideal way to make a lot of money from a property, particularly since even if the property market stumbles, the rental market tends to remain fairly robust.
Choosing the right property is the tricky part, but here are some considerations to keep in mind before making what is a serious investment.
Avoid Love At First Sight
Some people will spot a home with some unique features and immediately feel a connection to it. There is nothing necessarily wrong with this, as long as the home is for themselves and they do not neglect the other fundamental parts of the buying process.
However, as easy as it can be to convince yourself that a personal preference is a unique selling point, ultimately it is important to look pragmatically at potential rental properties based on what they offer to other people.
Set A Sensible Budget
Bear in mind that a buy-to-let investment makes you a landlord with legal responsibilities, so when setting your budget and arranging a suitable specialist mortgage, make sure to set aside money for all of the additional expenses owning a let property incurs.
This includes not only the various fees involved with purchasing the property in the first place but also renovations, maintenance, rainy days when the property is vacated, insurance for landlords and other costs.
Strongly Negotiate
People buying a property to let are typically at an advantage because they are not part of the chain, and it is useful to leverage that advantage to negotiate the best possible price for the property, with sellers sometimes motivated by an eager buyer willing to purchase quickly.
