I never thought I’d ever be in the situation where I’d own an additional property on top of the main residence we live in. However, we didn’t really have much of a choice at the time. For context, our first property is in London, and while it’s a beautiful two-bed flat, it’s perhaps not in the most affluent area at the moment. Over time, it’s likely to become more popular as the city centre becomes more expensive to live in.
It meant that selling it is currently not an option, mainly because we’ve seen other property owners in the development put up their property for sale, and some haven’t sold over a year later.
While we’ve sort of been boxed into this opportunity, I know that it is going to be an incredibly beneficial investment, and I’ve always wanted to go into investment property. If you’re considering a buy-to-let property, then here are some helpful tips for navigating it.
*This is a collaborative post. Image Source
*This is a collaborative post. Speak to a mortgage broker and advisor
First and foremost, it’s good to speak to a mortgage broker and advisor. We had one who did the sale of our first property and has dealt with every remortgage and mortgage we’ve taken out since.
It’s good to speak to mortgage advisors or brokers to get a better sense of what buy-to-let mortgages are available. While there are a few that you could find yourself, you won’t have access to the entire market, nor will you have the best deals available. It’s good to speak to a mortgage advisor or broker to get the best let to buy mortgage rates.
Calculate your potential returns
Buy-to-let mortgages often provide some great returns depending on the rental yield in the area and how much you owe on the property. The less you have to borrow or what’s remaining on the mortgage that’s existing mortgage, will influence your potential returns.
It’s therefore good to assess your potential returns so you know exactly how much you could make from owning a buy-to-let.
Budget wisely and think about the future costs
When it comes to buying a property or converting your existing property to a buy-to-let, it’s good to budget. You’ll want to figure out what’s going to be spent on securing this type of financial investment.
From stamp duty to solicitor costs, there’s a lot of added expense that comes from buying a buy-to-let before you even start making any money.
Arrange insurance
Insurance is good to have when you become a landlord, and we got ours with a company called Simply Business. Just like other providers, there are plenty of options out there, so it’s good to shop around. Your buy-to-let lender or mortgage provider will often offer insurance products to save you the effort, but checking out the options yourself is helpful too.
Look for the right property
Once you’ve got all the financial and legal processes underway, you’ll want to look out for the best property available. The type of property you choose will depend on the potential rental yield available. You should consider what areas are worth investing in and the types of properties that are best for the budget you have available.
It might be worth shopping around a few agencies and getting a feel for what’s out there currently. It might not be the best time currently to get a buy-to-let.
Decide on management if necessary
Finally, while it might be something you mnage yourself as an investment, we found the best solution for us was to opt for management on our buy-to-let. The main reason was that our flat is in London and with us now being up in Staffordshire, we don’t have the want or ability to just be at our flat to sort minor or major problems when they arise.
*This is a collaborative post with Ascot Mortgages. All words are my own.
