Following the first in our series of buy-to-let blogs, the second instalment covers ‘what’ to look for in an investment property.
Often the word ‘landlord’ brings to mind someone with a portfolio of lower-value flats on interest-only mortgages, or an empty second home that’s calling for occupation. However, property investment comes in many forms. In our localities, there’s such variation in types of architecture, style, and build, drawing a wide variety of tenants. We’ll cover the topic of where to buy later in this series, but here we advise on what to have on your list of needs when purchasing.
In an ideal world, there’d be a selection of readymade, high-yielding homes that increase in worth steadily, but it’s sensible to look at both future opportunities, and current income potential. When considering target tenants, try to put yourself in their shoes; what works on a practical scale for them, as well as what works as investment for you.
An ultra-modern apartment may appeal to a hip couple for example, but a garden will draw in a larger majority of tenants – from young families, to more mature generations. Parking may not be necessary in central locations, but will be important in rural areas. Luxury fixtures and fittings can be subject to wear and tear, and may require specialist repairs. Although they’ll entice a particular market, make sure that the home is offered in good order, before worrying about perfect appearances.
A new-build property, albeit costing a premium, may allow you to go straight to the rental market, without renovation or updating, whilst also attracting a premium on rents. The property may not provide huge capital appreciation in the first few years, but the higher yield is a big benefit. In contrast, an older home in a popular area will appreciate in value in the long-term. Think about whether equity, income, or both, sit in your plans.
For available properties to suit your ‘wants’, or how we can help with your buy-to-let journey, contact us on 01525 40 22 66 or email ampthill@orchards.co.uk.
