Buy-to-let investment: how can landlords make the most of it?

Buy-to-let Investment tips
Buy-to-let Investment tips
1) Research the market:
Making an analysis of the property market in London is always important before jumping into a buy-to-let investment. Knowing the prices in the market allows you to calculate how much benefit you will be able to have in the future. Find a property that you can afford, you like and fits your investment purpose and idea.
2) Finding a promising area
It is important to find a property to rent out in a developing area of London which fits the criteria you value the most. There are many opportunities in London and in order to maximize profits, it is essential to be open to new areas and not to be focused only in a certain spot of the city. Find areas where there are plenty of properties for sale, since prices should be lower, and demand for renting should increase.
3) Do the maths
When you are in a property search process, you must bear in mind all the costs involved. Find a property which you can not only afford now, but also in the future. Calculate the mortgage, the refurbishing payments, any other costs or loans that you have or will undertake and make sure you have enough to cover them.4) Search for the best Mortgage
In an active market such as the property industry in London, banks and loans play a big role. At the time of deciding an investment, don’t just walk in your bank and ask for one. Research, analyze and calculate the different options you may have with different institutions and select the most convenient for you.5) Target tenant
Make a profile of the kind of tenant you will like to have in your property. Will there be students? Will it be a house/flatshare or a fully rented property? It is important to decide what type of tenants you will have, and refurbish or prepare the property for the desired tenants

6) Always remember costs and go for continuous yield.
Property investment is not a short-term investment. Do not aim at making a huge profit in a year by buying-selling a house. It is very important to consider the yields and costs of the property. Calculate all costs and yields, and expect pure benefits to come in a long-term basis.

7) Consider further away properties
A property in the neighborhood you live in is always appealing since you are able to easily keep an eye on it. However, searching only on the area you live in can only limit your broad possibilities of investment. Have a look at other areas of London, and consider the opportunity of investing far from home.

8) Negotiate the price
You will usually face an overpriced property when asking to buy a property. Bear in mind that you can negotiate the price and that if you have found that property for sale, its owner is in fact looking to get rid of it. Negotiate the price according the area’s average and your budget!

9) Remember the negative aspects
It is essential to always bear in mind the pitfalls of a buy-to-let investment. Consider the price you are paying and consider the fact that property is not a steady business and it has constant ups and downs. You must be able to overcome the pitfalls before you ever enter an investment like this, so always keep in mind that you will face difficulties at some point.

10) Decide the degree of implication you wish to have
Do you want to do viewings, draw contracts and supervise the property, but acquire more money in return? Or you would rather let an agency manage your property in exchange of a certain fee? The degree of implication you want to have is a good aspect to decide at the time of making a buy-to-let investment. Although it involves viewings and contracts, online property portals can be of great help!

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