Finding An Investment Property: Your Ultimate Guide

Getting your hands on the best property investments is not as easy as it sounds. It helps to do some digging before jumping right in.

Finding the right investment property can be a complex task, as there are many elements to consider. Which area is best? How are you going to invest? And how are you going to make it all pay off so that you get a substantial return on your investment?

When you go out buying rental properties, you’ll find an array of houses and flats at prices that may well be in your budget. But it’s always wise to first consider what type of property is best suited to you — and what kind of tenants you’re aiming to attract.

While a roomy house or flat may look good when you’re carrying out an inspection, for instance, keep in mind the ongoing maintenance you — or a letting agent — will have to do. This is so it’s not only up to standard and comfortable to live in, but so it’s also in compliance with existing legislation and local regulations.

So a one-bedroom or two-bedroom flat might be a better alternative, especially if you’re starting out and looking for one of the best property investments you can get. It will be easier to maintain and perhaps more suitable for a professional couple than a larger property.

Financing Your Investment Property

Most people don’t have the cash to buy a house or flat outright, so mortgages are the only alternative. For buy-to-let, they’re attractive because mortgage rates are currently at record lows. But while this may be good news right now, interest rates will certainly rise, so you need to factor that eventuality into your return on investment.

Additionally, landlords are now required to pay 3% more stamp duty on buying rental property. Introduced by the government last year to cool the thriving buy-to-let market by heaping more tax on those buying properties that are not their main residence, the effect has been fewer landlords buying rental property. Also, restrictions on finance cost relief for landlords is being phased in. By 2021, it will be zero.

Yet, even with these seemingly harsh new changes, buy-to-let remains one of the best choices for new and seasoned landlords. There are, of course, no guarantees of a solid return on investment, but when you’re looking for the best investments you can find, would you rather put your money into the turbulent world of stocks and shares?

Renting Your Rental Property Out

Buying Rental Property and Making It Pay

If you’ve managed to snare a great rental property in a good area, congratulations! Some people might be tempted to pick up a bargain in a run-down neighbourhood of their town or city, but while the price may be more than right, chances are you’re not going to find the right people for the place. Uninterrupted revenue streams for landlords are based on professional tenants with good jobs, who wish to live in a good area with lots of amenities. Anything less risks your all-important rental income.

By protecting that revenue and making it grow, so that your investment property really pays off, landlords also need to lower their overheads. And they should try and cut the time spent running their rental houses and flats as much as possible.

Savings in time and money can certainly be made by appointing a seasoned letting agent to do the work on your behalf. Then, you can sit back and wait for your rent to be collected for you.

Want to know more about finding an investment property? The property experts at Horton and Garton are available to talk to you about it. Contact us today.