For those who are new to the industry, building a portfolio may initially seem like a long and complicated process but this really isn’t the case. Once an investor can learn how, and where, to get the best returns on their investment then there are no reasons why they shouldn’t be generating a decent profit.
No matter how many properties you look to own, a successful investment is dependent on making smart choices, whether it be with just one property or a hundred. Rental yields, capital growth and a prime location all play a huge part in the buy to let process and getting these right will lead to a better investment.
• Keep your property tenanted
By investing in properties that continue to see rental demand all year round, you can allow for fewer void periods. The key to buy to let is finding an investment that will continuously provide returns. Even if a property appears generally appealing and offers a strong yield, it also needs to have the ability to continuously captivate tenants, otherwise the investor may risk long void periods. Consider areas in and around city centres, near transport links and close to businesses and other amenities as it is these locations which will continue to appeal to potential tenants.
• Know how to get the best returns
It’s understandable to want to save costs in areas of buy to let that may not initially seem vital, whether that be agent fees, repairs or the general upkeep of a property. However, a neglected investment will lose value in the long term and is likely to affect not only the value of the property, but its net income too. Letting agents also have the ability to negotiate higher rents, so don’t dismiss this when trying to cut costs. Although the potential for capital growth is important when it comes to making a successful investment, those who want a steady, regular income are better looking in areas where prices are more middle of the road. This way, you won’t be paying over the odds but you are in a position to see higher profit margins.
• Seek professional advice
As a property investment specialist, Sequre can advise both new and existing landlords how to make the best returns on their investments. Buy to let is becoming more popular than ever so it’s important to have all the right information and the best possible advice before moving forward with a property purchase. Investment consultants are experienced in the market and are willing to guide investors into making smart choices, so don’t be afraid to make use of their knowledge and experience, whether you already own property or not.
