Property investors have come back to the market following a dip at the beginning of the year according to Rightmove. They say that new listings on their website are 6% higher than in 2015, with a national average of 0.5% on the quarter and 3.2% annually, bringing the average rent to £779. With the exception of London where rents were down 0.7% compared to the last quarter.1
Many people still view investing in property as an attractive option as a major shortage or rental properties in the UK which has continued to push up prices, in the short term there doesn’t seem to be a change in this situation. Although first time buyers are starting to access more mortgages, there is still a huge amount of people who need to rent as they simply can’t afford to buy their own home.
If you are thinking about investing in a property here are a few tips:
Research is key to making sure that you make a good investment. If you invest in your local area it will give you a much better understanding of the current market, alternatively if you are looking at investing in another area then use a local agent such as Intercounty, as they will be able to supply you with all of the local information.
Look for a promising area where you know there is a shortage of rental properties, next to a good school, university with in a commuter distance from a main city etc.
Make sure you can afford your buy to let mortgage, most investors look to cover 125% of their mortgage so that it covers down periods and any ongoing costs.
Work out the rental yield of a property before you buy, this is the money you will receive based on the total value of the purchase price.
Buy a property which is ready to go or a doer upper? This is really down to your personal situation, some investors will want to buy a property which is ready to go and others will want to increase the overall value of the property by doing it up.
Consider using an ARLA registered agent such as Intercounty as the rental laws are so complex that you could easily fall foul of the law, especially if you are embarking on a buy to let for the first time.
If you would like some more help and advice on buying an investment property why not pop into your local branch of Intercounty for a chat and a coffee, or call us on 01279 655248.