Before you choose a property to purchase and rent out, it’s important to identify your financial objectives and then choose the type of tenant you will be targeting, according to the experts featured in the latest episode of the Buy to Let Show.
The show, devised by Kate Faulkner, who runs Propertychecklists.co.uk, with the support of Direct Line for Business, is aimed at both new and existing landlords and is part of a six-episode series of 25-minute programmes, featuring Kate’s expert advice, case studies and tips from industry experts.
In the third episode, Choosing a Buy to Let, Kate is joined by Christina Dimitrov, of Direct Line for Business, Michael Wright, of RITA4Rent property tax specialists, Carrie Alliston of Hunters estate agents and Vanessa Warwick, of Property Tribes, the landlord and investor community.
Between them, they discuss the factors to consider if setting up a limited company to invest in, whether you should invest in a flat or a house, and they look at why a ‘discounted’ property may not always be the bargain it appears to be.
A case study is provided by Andrew Paris from Livingstone Homes Ltd who explains how he began renting out boutique HMOs (houses in multiple occupation) in Nottingham as a sideline six years ago and how this has since developed into a full-time business.
Kate Faulkner said: “A vital step in the buy to let process is working out what returns you want to achieve, matching these to a tenant type and then choosing a location they want to live in, and property they will want to rent. This is where property tax advisers and letting agents can help, as they can pass on their expertise to help you succeed.”
Choosing a Buy to Let is the third show in the series, with previous episodes considering buy to let as an investment and how to finance and cover your risks. Future episodes will cover Letting Legally and Safety, Buy to Let Problems and, crucially, How to Plan an Exit from Buy to Let.
Each show is accompanied by a useful eBook, which goes into the subject in more depth. These are free to download and include vital checklists, calculators and advice as well as details of how to get in touch with experts who can provide further help.
All the shows can be seen and the free eBooks downloaded, as they are released, from here