…as the old adage goes – it’s unclear where this saying originates from but it was first put in print in 1997. It remains largely true even today, and if you are looking at investing in a BTL it could give you a much better return than most other types of investments - you only need to look at how much property has increased since 2000 in the UK – 181% on average. *
However as with everything in life if you are thinking about investing in an additional property for the first time - perhaps to top up your retirement or as part of your wealth planning you will need to make sure that it’s a savvy investment, and to do this there are various aspects you need to take into consideration.
Do your sums – how much will it cost to buy a property, how much yield can you expect to get, work out your tax obligations, health and safety aspects, if you will need a good property management company such as Intercounty, how much will that cost. Always consider void periods in your property.
Make sure you understand your local market – a good local agent such as Intercounty could help you with this. If you are buying in a university town then buying an HMO, House with Multiple Occupancy might bring in a better return. However if you are looking at buying a property in a town within commuter distance of a big city then a smart apartment might appeal more to professionals, a family house will ideally need to be in a good school catchment area.