Buy to Let
As investments go, historically investing in bricks and mortar has been a pretty safe one, but you must look at it as a medium to long-term investment and not the means to a make a quick profit.
Follows these Jeffrey Ross steps as a guide:
1. Research the market
If you are new to buy-to-let, what do you know about the market? Do you know the risks, as well as the benefits. The more knowledge you have and the more research you do, the better the chance of your investment paying off.
2. Choose a promising area
Promising does not mean most expensive or cheapest. Promising means a place where people would like to live and this can be for a variety of reasons.
3. Do the maths
To calculate the percentage gross rental yield on your investment
(total income per year ÷ the value of the property) x 100 = % gross yield
To calculate the percentage net yield
([total income – total costs] ÷ the value of the property) x 100 = % net yield
Don't forget to factor in maintenance costs. What will happen if the property sits empty for a month or two?
4. Shop around and get the best mortgage
It pays to speak to a good independent broker when looking for a buy-to-let mortgage. They can not only talk you through what deals are available but they can also help you weigh up which one is right for you and whether to fix or track.
5. Think about your target tenant
Set a realistic rent. Setting a high rental value will not only put off tenants but could well increase the amount of time your property is vacant. This means you’ll be spending money, but there’ll be none coming in.
Of course, there is so much more to the process and every single case is different. So, we highly recommend you speak to your local Jeffrey Ross lettings team for more detail information or contact us and we will get back to you.