If you have been thinking about buying the very first property that you want to let out to a tenant, there are some important considerations to make ahead of time. By putting plans in place at an early stage, you can help to keep your financial investment on track, as well as make the process as smooth as possible.
To help you on your way, it might be helpful for you to read and absorb the following points. With any luck, you will be on your way to starting a fruitful investment for the years to come…
Buying at auction
Will you be buying a property at auction? If so there are a host of things you should keep in mind. The first is to ensure that you have funds available, either by cash or by buy-to-let mortgage. If you need to find a temporary solution until a long-term agreement is reached, a bridging loan could be an option. Other things to remember are that you should only bid on a property once you have viewed it and read the particulars; you wouldn’t want a nasty surprise resulting from not doing your homework.
Buying from an estate agent
Buying a property at auction can be quicker, but others prefer to use the services of an estate agent instead. You will need to be accepting of this if this is the route you want to take, so be flexible as you might not be able to get to work on a property as quickly as you would like. After the viewings, you will enter a bidding process. Once an offer is accepted you will then need a solicitor to handle all of the legal requirements. If the seller is in a chain it could take longer than you originally anticipate.
Potential yield
Sums are hugely important when getting involved in buy-to-let properties as it is all about the potential yield that you will achieve. Some places in the UK could offer you 12 percent, whereas some could linger around one percent – it is up to you to decide what is important, and how to attract the tenants you need.
Required renovations
Part of the calculations you will need to do will involve the renovations that are needed at the property you buy, if any. Some places will be brand spanking new, but others will need work done to the electrics, boiler, roof… the list continues. That is why surveys can ease your worries when you are buying a property as you will be able to get some quotations done for the work needed before you sign on the dotted line.
Turnaround time
When it comes to buying property and getting them ready for letting out to tenants, you should always be aware that delays are very possible. Whether they originate from hurdles with contracts or even issues with planning officers about an extension you want to build, you should try to stay as patient as possible. Things generally have a way of settle themselves in the end, so just stay concentrate on what you can do in the meantime.
