If you are in the lucky and envious position of being able to think about what to do with any savings or a lump sum of money, then you won’t do much wrong by looking into property and obtaining buy to let mortgages. They provide a long term profit and a low risk investment for anybody who has a simple bit of common sense. However there are numerous pitfalls that need to be avoided when looking for the best buy to let mortgages, and this article will set out some ground rules for you in your search for your investment.
1. As you start your search for an investment, the location of the property should be paramount above all other factors. This is advised as the area can affect the price of the property you buy more than anything else, with things such as crime rates having a big impact. You should do some research on the area by looking on the internet and surfing local community websites.
2. Try and find out what sort of figure you can expect to bring in from rent every month on each property you look at. Make sure you don’t just believe what the estate agent or the house seller tells you, as they may tell you an inflated figure in order to facilitate a speedy sale. An easy way of finding out the potential is to ring up letting agencies and pose as a tenant, asking how much the rent will be per month on a similar sized property.
3. Research other properties in the area you are looking at and determine what the price range is. This is so you do not pay over the odds for the property you are interested in. This can be found by looking in the local newspapers, or by searching on the internet.
4. Do not under any circumstances buy a property in an undiscovered area. This is a bad move unless you have been given solid advice by a trusted professional to do otherwise.
5. Be sure that you do not narrow down your area for your investment, as by doing so you also narrow down your chances of finding something suitable. Consider the adjoining areas as well, remember you will not live there yourself!
6. Approach and keep in contact with all the estate agents in the area, every single one. This is so you do not miss out on anything.
7. Patience is often a virtue that is needed if you are going to make the right investment in the property game. You can often be waiting months or even over a year until you find a property that ticks all your boxes.
8. When you do finally find a suitable investment, but it is in a bad state and needs work doing on it, consider whether you have the time and the money to put it back to the correct state.
9. Have a full professional inspection carried out on the property before you sign any contracts or pay any monies. If there are any issues not viewable to the eye on the property, a survey will seek them out.
10. When you finally find your investment, always go in lower than the asking price. As you will probably not be part of a chain, if the seller is looking for a speedy transaction, they may take a lower figure.