Residential Investment Property
How To Pick The Right Residential Investment Property Deals
Choosing the right residential investment property is one of the most important aspects of making a success of buy to let. Market research will pay big dividends and will provide an investment property that is easy to let out. There are a number of factors that will influence this choice. Some of these will be the same factors that you would consider when buying your own home. Since your residential investment property will be your tenants' home, it makes sense to consider their requirements before finalising a purchase.
One of the key factors to consider when buying an investment property is how convenient it is to get to and from the property by public transport. Proximity to bus routes and train services will enhance the let-ability of an investment property - though being under a flight path probably won't. A residential investment property that is close to good schools will be popular with families and it is also useful for landlords to consider leisure activities. If your residential investment property is close to shops, bars and restaurants, then many people will find this an advantage.
Reasons to Rent A BTL Property
Many people choose to rent a property because of changing work patterns. They may have a main residence but may need a room, a flat or a small house to live in during the week. This means that an investment property that is close to an industrial estate or a business park is likely to find tenants easily. Other major employment centres that will supply tenants for a residential investment property include hospitals and colleges or universities. Many doctors and nurses in training need somewhere to live while they are completing a stint in a particular town. And universities are full of lecturers who work part time and maintain a main residence elsewhere. In addition, students provide a good, consistent source of tenants for a residential investment property. Students will let for fixed periods and their parents may pay the rent up front. And many universities have summer schools or out of term activities so that student lets can be rented to other people when the university term is over.
When purchasing an investment property it is also worth considering how it compares with other property in the area. If it is run down, you may have to refurbish it so it doesn't suffer in comparison with neighbouring residences. Refurbishment requirements for your residential investment property will vary depending on what kind of tenant you are hoping to attract. Professionals are likely to expect a higher level of finishing, fixtures and fittings, than students.
Finally, you need to think about the cost of maintaining your investment property. In addition to making sure that the dwelling complies with all applicable legislation, there may be ground rent and management charges if you hire a letting agent.
Looking after all of these areas should help you identify the right property for your residential investment. Doing your homework should make it easier to ensure that you end up getting both income and capital appreciation from your residential investment property.
