Friday, October 14, 2016
Essential Traits Of A Profitable Buy to Let Home
When you enter the buy to let market, there is a lot to think about. But your focus should be making as much profit as possible, both through rental income and when you eventually sell your property. In today’s guide, we’re going to go through the top traits of a more profitable buy to let home. Take a look and always have these traits in mind before you make any buying decision.
Focus on location
Ask any professional property investor about the importance of location, and they will all tell you the same thing. It is vital that you consider the location of your new buy to let if you want to make more money from rental income and when you sell it. The quality of the neighbourhood is essential, of course, as is access to services such as public transport. You should also think about doing a lot of research before deciding on buying a property in a particular area. If rental rates are already high, for example, you won’t make much profit. But if you can find an area that is being regenerated, buy cheap, and wait it out, you will find you can increase your income by a significant amount.
Being near a good school
Parents will always pay a premium for living near a great school. It applies to homebuyers, and it also applies to renters. So if you are planning on letting your investment out to families, do a lot of research on the local schools. Not only will it give you more rental income, but it will also increase the property value when the time comes to sell.
Nearby employment opportunities
Where the job market is strong, you will always attract higher rents. It’s that simple, and something you have to bear in mind when choosing the right location. It’s also worth keeping your ear to the ground for any upcoming developments in the business world. For example, if a major business decides to move into a new area, they will provide hundreds - maybe thousands - of jobs. It will bring an enormous boost to the local economy, and your rental rates can increase over time.
In an area with low levels of crime
Crime can strike in almost any area, of course. But if your property is in the middle of a crime hotspot, you can expect to command a much lower rent than elsewhere. Before investing, you should check with the local police station and ask them to give you a rundown of the local situation. Look at crime statistics for the area, too. The local council should be able to help you find what you are looking for. The most important crimes are things like burglaries, vandalism, and petty crime. Finally, don’t write off an area just because it has high levels of crime. While that might be the case right now, in a year or two things could be very different. Always look at the trends in crime, as much as the current figures.