Investing in buy-to-let pretty much what it says on the tin. You buy a property that you rent out to tenants. This should be considered a medium to long investment for anyone considering starting or continuing their portfolio.
Usually, a buy-to-let property is an excellent investment for you if you:
- Are willing to tie up some of your savings for a long period of time
- Understand and accept all the risks that come with investing in a property
- Prefer to invest in things that seem more tangible than shares
- Understand all the costings involved in owning and running the buy to let
- Are prepared for everything that comes with being a landlord
Choosing the Property
When selecting the correct property, it is pivotal beforehand to research into your new investment.
To start, what type of tenant would you like in your property? Dependant on the location will depend on the type of tenants you will attract. For example, if your potential property is rather large and is in a catchment for a well graded Ofsted school, then you are more than likely to have a family wanting to move into your property.
Being near to good schools, universities, colleges, shops, and public transport links can add value to a property.
Thinking long term, make sure you consider whether you could make profit on the property when it comes to selling it.
These days there are many different websites you can use to find the right property for you. Look online for listings and go into local estate agents.
Local estate agents have a plethora of knowledge around the local market and will be able to give you advise and tips on investing.
If you are still unsure on what to invest in, the internet is a great tool to use for researching and giving you the correct guide.
I started writing for PPO back in August 2019. I particularly enjoy writing about new housing developments and upcoming property events.