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Finding Your Ideal Investment
Whether you are looking to buy your first investment property or extending an existing portfolio, our sales, lettings and financial teams will work together providing a comprehensive service to fulfil your requirements.
We can advise on suitable areas and properties to buy, together with rental yields and mortgage options available.
Once you have found your ideal property we can ensure your purchase proceeds quickly and with the minimum of stress.
With our substantial database of potential tenants we can let your investment and provide an ongoing management service we consider to be second to none.
Call our offices today on either Northampton 01604 232400 or Wellingborough 01933 270360 and a member of our team would be delighted to help you.
Your home may be repossessed if you do not keep up the mortgage repayments on your mortgage.
Underwoods Town and County Top 10 Tips for Buy to Let Investing
1. Research the market
If you are new to buy-to-let, what do you know about the market? Make sure you know what the risks are of letting property as well as the benefits. Carry out thorough research and check local rental conditions. Talk to local letting agents about potential rent returns, but make sure they are regulated by the Association of Residential Letting Agents (ARLA) and hold a license to let property.
2. Choose the right area
Consider rental demand and determine the types of property renting in your area. Look for obvious clues such as large companies, trendy bars and shops, or the existence of good nearby schools and transport links. Choose a property with features that will appeal to your market. Where in your town has a special appeal? Where has good transport? Where are the good schools for young families? Asking yourself these questions might sound simple but they are probably the most important aspect of a successful buy-to-let investment. It may be that you can find more affordable houses, or stronger demand for rented property, in a different part of the country from where you live. Don’t be afraid to look further afield for the right property investment.
3. Think about your target tenant
Instead of imagining whether you would like to live in your investment property, put yourself in the shoes of your target tenant. Who are they and what do they want? Family rental homes require plenty of space and storage, where as professionals will all want double bedrooms.
4. Shop around for funding
Make sure you shop around and speak to a certified mortgage broker who can offer you advice on a variety of products in the market.
5. Do your sums
Work out the monthly rent you can expect against the cost of your monthly mortgage repayments. Factor in the size of the deposit required. Always consider what will happen if the property sits empty for a month or two and allow for this. Set aside a maintenance budget for the year and take into consideration your legal obligations to keep the property safe.
6. Think low maintenance and low energy costs
You want a property that will run itself as smoothly as possible as well as being economical to live there with low energy costs for your tenant. Consider what type of heating the property has, the windows, and insulation.
7. To furnish, or not to furnish
Consider whether it would be best to furnish your property or not. Sometimes there is little difference between the rents commanded by unfurnished compared with part or fully furnished properties to let. It all depends on your market and the demand in your area. Before you go looking for furniture, take advice from a local regulated agent.
8. Take insurance
As a landlord, you should ensure that you are covered for buildings and contents insurance and in particular, for public liability, should your tenant injure themselves in the property. It is also possible to take out an insurance policy against your tenant failing to pay the rent and legal costs should you find yourself in the position of evicting a tenant, usually known as rent guarantee insurance. This can cost as little as £13 a month.
9. Know the pitfalls
Before making a property investment, you should always consider the possible pitfalls. Would you be able to continue your investment if house prices fall dramatically? One rule of thumb many buy-to-let investors apply is to factor in the property sitting empty for two months of the year. Also consider what would happen if unexpected major repairs are needed to your property.
10. Use an ARLA Licensed agent
Buying a property is only the first step. If you decide to manage the property yourself, be prepared to do some hard work. A buy to let property is far from being a hassle free income. Most landlords will choose an agent and while you will pay a management fee, they will deal with any problems, offer legal advice and provide a good network of plumbers, electricians and other contractors if things go wrong. You wouldn’t use an unlicensed doctor, dentist or travel agent, so don’t use an unregulated letting agent. Make sure they are licensed by ARLA (Association of Residential Letting Agents) to let property and that their client account is insured. For more information, call