Buy to let guide
Buy To Let
Buy-to-Let investments have long been the cornerstone of the property market and present an opportunity for property investors to create a monthly income, as well as increasing the equity in their property, or property portfolio.
There are several factors to consider before purchasing a buy-to-let investment:
First and foremost, if the property is vacant, will you be in a position to afford the mortgage, assuming there is one in place, on top of the council tax, utilities, and service charges (if leasehold)? Are you in a position to meet those obligations, if the tenant stops paying the rent for whatever reason?
Plan ahead and build a reserve in case the worst case scenario happens. There are insurances available for Landlords and we’d be happy to refer you to a local broker. Please contact our office for more information.
Typically, Landlords purchase properties within relatively close proximity to where they live, as they are familiar with the area and know the target demographic. If you are considering purchasing an investment property in an area that you’re not familiar with, we’d recommend you carry out thorough research before committing to a purchase. Speak to the local agents to ascertain what the demand is like for rental properties in the area and even take a walk around the local area to familiarise yourself with amenities, public transport links, and so forth.
Return on Investment (ROI)
Is the return on your investment better than the money being sat in the bank, or building society? The likely answer is yes. Typically, a buy-to-let investor would look for in excess of a 5% return on investment per annum on a single residential dwelling. There are potentially far higher gains in the student investment market, house of multiple occupancy (HMO) market and commercial market. Please contact our office for more information on any investment properties you are looking at. We’d be happy to provide no obligation advice.
Be sure to speak to an independent mortgage broker who can provide you with sound advice and products in the current market.
We can put you in touch with an independent broker for a free initial consultation.
There are some mandatory obligations that a Landlord needs to fulfill. If the property has gas central heating, then an annual gas safety certificate will have to be issued, for example. There is also the matter of registering with Rent Smart Wales, which can be done via their website: https://www.rentsmart.gov.wales/en/landlord/landlord-registration/
Please contact our office to see how we can assist with the above in our management package on 029 2052 2106.