advicefor property investors

http://www.marlboroughestates.com/site/go/landlords
advicefor property investors
https://youtu.be/sJ14SzJvcDY
For many, buy-to-let appears an attractive income investment at a time of reduced rates and stock market volatility. If you are considering investing in property, or improving your returns on a buy-to-let you already own, it's important to do things appropriately.
Having peaked in popularity in the boom years, Buy-to-let has seen a resurgence these days. As an income investment for those with enough money to raise a huge downpayment buy-to-let seems attractive, especially compared to low savings rates. The house and property market is apparently bouncing back so more investors are buying, not merely for the monthly income stream but for the prospect of the value of their investment growing.
Loan rates at record low levels are helping buy-to-let investors make deals stack up. Deals are being advertised to set mortgage for five-years at just over 3 percent (at the biggest downpayment level). This comes with a note of extreme care - you have to be sure that your investment can stand a significant rate increase as one day the rates must rise. Recent history provides an important lesson in that. Numerous investors who bought in the boom years just before '07 struggled as rates on mortgages rising rose. Those who survived the credit crisis were thrown a lifeline when the base rate was slashed to 0.5 percent. Rates have stuck there since '08, but at some point in the future they will rise once again. Despite the prospect of costs to go up, there are more tenants in the market, rents are increasing and the availability of home loan products for investment buyers has increased,
If you are planning on investing, here are some facts to consider before taking the 1st step to becoming a landlord.
Research the market place - take advice from a property professional on the best style or form of property to buy in a particular area.
Select a promising area - typically people often invest in property close to where they live. Looking further afield can have advantages as greater rental yields may perhaps be available in up-and-coming towns and cities.
Do the sums - it is important to can still afford to make your monthly repayments should the interest rates go up or if the property requires sudden, urgent investment or maintenance. Buy-to-let loan providers usually want rents to cover 125% of the mortgage repayments.
Consider doing a house up - it's worth looking at homes that need improvement as a way of boosting the value of your investment. Tired properties or those in need of renovation can be negotiated more strongly in order to buy at a better price and then spruced up to add value. This will be a single way that it is still possible to see a solid and fast return on your capital invested. If you're able to add some value to a home straight away then it gives you a larger margin of safety and comfort on your investment.
Think about who your tenants will be - if you are aiming for young professionals then the house ought to be modern and stylish but not overbearing. If it is a family they will have most of their own belongings and they will need a blank canvas. Take into account that allowing tenants to make their mark on a home, such as by decorating, or adding pictures, or you taking out unwanted furniture makes it feel more like home. These tenants will stay for longer, which is very good news for a landlord.
Negotiate the price - a buy-to-let investor has the identical advantage as a first-time buyer when it comes to negotiating a discount. If you are not reliant on selling a property to buy another, then you are not part of a chain and this represent less of a risk to the seller. This can be a major asset when negotiating a discount. Make low but reasonable offers and never be tempted to overpay.
Take into account how hands-on you need to be - buying a home is only the starting point. Will you rent it out your self or get an agent to do so? Agents will charge you a management fee, but will deal with any issues and have a excellent network of plumbers, electricians and other contractors should things go wrong. In theory, you can make more money by renting the home out yourself, but be prepared to give up weekends and evenings on viewings, advertising and repairs. If you choose an agent then do so on track record. A referral from another landlord who has previously been treated well would be a big help. If you choose to do the work yourself then keep up with maintenance, make sure your home is a nice place to live and try and build a good personal relationship with your tenants.