6 Most Important Things to Consider While Buying Homes to Let

Real estate is a smart investment option and if you’re considering buying a property to let – it proves you’re smarter. Investing in residential real estate is a sensible approach as it is more or less assured to deliver a sound monetary return. But there’s a but, warns leading property agents in London. 

Residential properties provide handsome return only if you have ticked all the right boxes. Else you’ll find yourself riding a white elephant, which is too expensive to cover your mortgage loan. Instead of being your asset, the property turns into a liability and gradually ruins your chances of improved finance.

Experienced property agents associated with a leading estate agent in London - O’Sullivan Property Consultant with its office in Mayfair – share the following tips to help you invest on the right residential real estate properties.

Tips to recognise and invest in the right residential properties

·        Focus on the location
Location is one of the most vital matters to consider while buying residential property to put on rent. When you compromise on location, you are likely to get properties at cheaper rate in the interiors. But finding tenants for those properties may prove to be somewhat challenging. Moreover, the rental income will be pretty small. There’s no point in buying a rental property, which is some 200 mile away from your home. When you buy a rental property near your home, you can visit your tenant easily, almost any time. In short, you gain nothing when you shift the focus away from location while buying any immoveable property. Invest in a good value property in a location where rental demand is high. 

·        Invest quality time and effort on research

In this age information is power. You’ve to research on almost every aspect that concerns homemakers related to your focused area. The aspects include:

ΓΌ      Reputation of local schools
   Speciality hospitals, clinics and dental practices existing in the area
   Ease of transport links
  Crime rate in the neighbourhood

You also need to collect factual information on the current rent going on in the region.

·        Be practical and don’t let loose your emotions
There’s a difference between buying a home for yourself and buying a residential property to put on rent. When you’re investing money on residential property with the expectation of earning rental income, your personal preferences do not matter. Therefore, just put a lid on your emotions. Buying to let involves cold, hard finance. Buy sensibly so that your rental property is in perpetual demand from renters.

·        Do some basic calculations before buying
Suppose your monthly mortgage payment is £500 when the rent of your property is just £400 per month. This is not a good deal as you have to pay out of your pocket each month to cover the mortgage. Ideally, choose rental property which yields rent that not only covers the mortgage but also leaves you some spare. This spare amount when compiled over a period takes care of at least the minimal maintenance cost, which will definitely come up at some stage or the other. 

·        Be friendly with the tax rules
Before investing in rental homes you should have a clear idea about the latest UK tax regulations. The tax rules keep changing with time. As of now, you’ve to add your rental income with your normal income and pay the appropriate tax on the whole. Then, you can claim back your tax credit.

·        Maintenance and refurbishment
When you want to earn the best possible rental income, your property has to look smart, modern and clean. It costs money to make your property appear well looked-after and well-maintained. Your rental income must be sufficient enough to cover these expenses.

Estate agents in Mayfair London UK at O’Sullivan Property have some more suggestions for you. It is important to take your time and weigh each and every aspect very carefully before making the move. Buying a rental property should never be an impulsive decision. Hire reliable and competent estate agents, who are usually well-aware about the neighbourhood. Voluntary suggestions from knowledgeable and experienced estate agents prove decisive in such situations more often.

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