publication date: Oct 8, 2010
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books
Buy to Let Houses
Many people entering the buy to let market don’t appreciate that carefully choosing what buy to let houses you purchase is the key to success. Follow Kate Faulkner’s top tips to choosing the right buy to let houses to make sure your property investment is a success!
Kate Faulkner's Top Tips for Buy to Let Houses
Top Tip 1
What is your aim in investing in buy to let houses? It is important to choose whether it is more important to generate income or capital growth from your buy to let investment. Sometimes you can get both, but at the moment, capital growth, apart from expensive areas around the UK is likely to be tougher to achieve over the next five years.
Top Tip 2
Think about your buy to let house not as a ‘house’ but as a ‘profitable box’. Effectively this is what you are buying. Sometimes that box would be better off being rented to sharers, sometimes better to rent it to families. Be aware that if your rent to sharers you might need to operate under a licensed HMO.
Top Tip 3
Don’t start your buy to let house search at the estate agents! This might sound odd, but all estate agents have a vested interest in selling you a property that is on their books. Companies that specialise in lettings only will have their own contacts to find you a great property, but more importantly the ones that have researched their markets well and know every corner of the area, will be able to look through 100s of property details in a matter of a few hours, advising which ones are likely to be the best for you to purchase.
Top Tip 4
Make sure you do your sums! Kate Faulkner, Managing Director of Designs on Property says “The biggest error people make when buying a buy to let house is that they don’t add up all the costs of buying, the costs of renting the property and the cost of selling it. As a result they typically overestimate the income and underestimate the costs, often thinking they are making money, but some add up so badly that they are really losing money!”
Top Tip 5
Make sure you secure the help of a property tax specialist BEFORE you buy. Most people don’t understand how they are taxed on buy to let property. Unfortunately there isn’t ‘general advice’ that can be given as everyone’s individual circumstances are different. So it’s essential to get advice prior to purchasing buy to let houses.
Need help with your current buy to let portfolio or do you need advice and help buying a buy to let house? Then why not request our free Buy to Let checklist or purchase our Buy to Let Pack which includes access to our buy to let costing sheets, practical help and over 75 things you need to do to successfully buy and run a buy to let house portfolio.
For more details contact Kate at Designs on Property by emailing firstname.lastname@example.org or calling 0845 838 1763.