Home For You - Buy to Let

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BUY-TO-LET

Many more people are deciding to rent rather than to purchase. This change in property demand brings opportunities to those who want to buy-to-let.

Demand is high for a number of reasons: The workforce is becoming more mobile with increasing numbers of people employed on temporary contracts; of course there will always be students in full time education needing rented accommodation; 6 out of 10 people who rent are local. ….

To help ordinary people invest in this growing sector, Home For You have become very much involved in Buy-Yo-Let schemes with the aim of making it easier for people to buy investment properties and rent them out.

BUYING THE RIGHT PROPERTY
Don’t let personal taste decide which property you put your money into - remember that it is a business proposition. When considering buying a property you must research the market so look for a property that will be easy to let and manage and produce a good long term increase in value (Capital Growth). Buy-To-Let is a mid- to long-term investment - think a minimum of 5 to 10 years.

BUDGETING – COSTS
When you purchase a buy-to-let property you will have the same set-up costs as you would with any property - stamp duty, legal fees, survey costs, plus mortgage related fees etc. To help calculate your budget accurately ask yourself:

How much cash do you have access to ?
How many properties do you wish to buy ?
How long a term do you wish to keep them ?
Why do you wish to buy them ?
A deposit of 15% -£30% will normally be required.
The loan will also be calculated on 125% in rent to your loan

Consider the following when looking for a potential property - is it:

Close to major road links, motorways but not too close to be affected by traffic noise ?
In a commuter area with good access to rail, bus transport
In a area suitable for younger people ?
In close proximity to good schools ?
Far from shopping facilities and other amenities such as pubs restaurants, schools etc

To furnish the property, you will need furniture and fittings that conform to the latest safety regulations. Alternatively you may choose to leave it unfurnished…

Unfurnished would be considered – Carpets, Cooker, fridge/freezer, washing machine, lampshades, etc.

However, some properties should be furnished - a one bedroom property would be expected to be furnished as a single person or couple would probably not wish to go and purchase items just for a tenancy..
It is important to get the balance right between the property and the tenant.
When buying think 5-10 years ahead

Your agent (hopefully you will choose - Home For You)
In Bristol we can offer good advise as to which are the best areas to purchase. We advise on the average returns per calendar month(pcm), types of tenant, furnishings, properties to avoid HMO’s, The 2004 Housing Act. Gas and Electrical Acts, furnishing regulations and about 30 other Acts… all bodies – recommend that you use and agent and its not just –we would say that..it is getting a bit of a minefield.

MAINTENANCE
As a property needs to be maintained to a good standard to attract the best tenants. Such things as first impression, exterior, gardens, interior, have to be well looked after and we do suggest that you start as you mean to go on with a professional clean…a property with a large garden is more unlikely to attract tenants wanting to take on the responsibility of maintaining it. Older properties will generally need more maintenance etc..

We could go on - but if you are seriously interested please give us a call….