Buying a property to let can be a great way to boost your income, provide funds for the future, and even start off a new career as a full-time landlord. There are, however, many pitfalls to avoid when getting a buy to let mortgage. In order to get the best from your property investment, here are a few tips to help everything run smoothly and avoid unnecessary expense.

Starting out in property investment

Firstly, it is important to have a clear idea of your aims and how you would like to conduct your investment. Think of it as the same as starting any new business venture. It is wise to decide whether you want to simply make a profit within two or three years, start building up a retirement nest-egg, or take a career move as a property investor and full-time landlord. Knowing which you want will help you make decisions more effectively.

The next thing to do is to decide what kind of property you wish to invest in. Of course, many people getting a buy to let mortgage would like to snap up a cheap property, renovate it themselves, and make a fortune in profit, but it is important to weigh up just how realistic that idea is. Other choices at this stage relate to running the house itself. You may wish to cut out the middle man and manage the property yourself, or use the expertise of a letting agent. This all depends on your confidence, how much free time you have, how close you are to the property, and how clued up you are on tenancy law.

Searching for a buy to let bargain

Now it is time to look for your perfect buy to let property. The ideal property for a buy to let mortgage is one that is “under market value”, or in other words, a property that priced below what is worth. This might be because it needs some work on it to make it marketable. The trick here is to find a property that is under market value, but that you can renovate yourself, and still make a profit on, despite the cost of repairs. According to some sources, there are properties out there being sold for as little as 20% below their true value, so keep looking.

Finding the right buy to let property can be trying. Many professional landlords might view as many as 25 houses before choosing one property to invest it. For this reason, it is a good idea to see as many properties as possible. Do not instantly turn down properties that are in cheaper areas, as these can turn out to be bargains, and check local newspaper listings and online property sites to check for private sales that cut out estate agents. The perfect buy to let property for you may slip through the net if you ignore everything other than the houses provided by estate agents.

Once you have found the buy to let property for you, the next thing to do is protect yourself. Take out insurance that will cover you for void periods in the house, as these are unavoidable, and make sure that your surveyor carries out a thorough inspection of the property, as you will be liable for all of the property’s maintenance.

This entry was posted on Friday, October 24th, 2008 at 3:30 pm and is filed under Landlords, Property Investment. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.