How to Make Money From Buy-To-Let
July 27th 2008 09:50 am By Web Development in India
You have probably heard about people who have made a fortune out of property investment and about a few people who have lost money too. Even the news is full of it too.
These days there is always some survey or other on how house prices are moving, how long it is taking to sell properties, how rents are doing and what the ration of this to that or the other is.
With property, unlike many other kinds of investments you are the one in control. You can walk past your property and actually see your investment.
Property also provides something we all need - shelter- so there should always be demand for it.
How to find the right property
1. You will need local knowledge.
The skill of the property investor and landlord is in identifying the local opportunities and acting on them. To do this you need local knowledge. So look for estate agents who have many properties in your chosen area and rely on their expert knowledge of the market and the area.
2. Location, location and again location. How to choose the right area?
Location is extremely important when buying any property, and even more when buying property as an investment. If you are buying to let, remember you aren’t going to be living in it, your tenants are.
If your idea of a superb location is somewhere on the moors, miles from main roads and public transport, you will need to think again.
The ideal property for letting is one that will give a good rent and will have potential to go up in price too.
For the price of the property to go up, the area /and type of accommodation/ must become more attractive to both home owners and tenants.
3. How to choose the right kind of property
Once you have spotted a good area, you have to buy the kind of property that meets tenant demand in that location. Letting agents know what kind of property is most in demand in an area. They will tell you what sort of properties let easily and what they are most short of.
4. Whether to buy a new or old property: Things to consider
In the lettings market, it doesn’t really matter whether the property is old or new. Some tenants prefer old properties, some new, but what they all like is space.
If buying on a new development, check out what building work will be going on nearby.
If buying an older property look closely. Use your judgment here - if the property looks in good condition and there are no visible signs of anything wrong structurally, you might just be OK with a basic valuation report. If you do go for a fuller survey, ask the surveyor specifically to check anything that particularly worries you and get a builder in so you can budget for building costs.
By Maria Zheleva for ICBproperties Ltd, a Bulgarian real estate agency offering a wide range of investment and holidays properties on http://www.ICBproperties.com On their website you can also find expert advice on different types of areas, constuction and building supervision.
