Are you a first-time buyer looking to make a return on your investment?
Buy-to-let is when a purchaser buys a house specifically for the purpose of letting it out to tenants rather than living there. By collecting rent each month, you can pay off the mortgage more quickly and often make a capital gain when it comes time to sell. Here’s what you need to know about buy-to-let!
Finding the Right Property for Sale
First, you’ll need to look at property for sale! It’s important to keep your future tenants in mind when browsing the available properties in your area. Are you looking to attract students? Families with children? Young professionals? Do you know what they are looking for in a rental, or what they are willing to pay each month? When purchasing a buy-to-let property, you need to know roughly what your tenants are looking for and whether you will be able to charge enough rent to make the investment worthwhile.
It is highly beneficial to secure a real estate agent who is experienced in this type of investment, as they will know exactly what to look for in the local area. If you’re looking for a real estate agency in Thurrock or Havering with experience in buy-to-let, Griffin Residential is the ideal partner for you!
Getting a Buy-to-Let Mortgage
Most home buyers rely on a loan rather than paying in cash. If you will be going this route, it’s important to keep in mind that buy-to-let schemes usually require a specific buy-to-let mortgage rather than the typical residential loan. Standard loans are intended for buyers who will be living in their new home themselves, while buy-to-let mortgages are intended for investors. Buy-to-let mortgages take into account the anticipated rental income of the property, and they often require a larger down payment than a standard loan.
Pros and Cons of Buy-to-Let
Buy-to-let can be a great investment. Despite market fluctuation, property values will nearly always go up in the long run. Also, rents tend to rise over time, and there are always people looking to rent a private property. As long as you find good tenants and you keep the property well-maintained, you are making an excellent long-term investment!
However, buy-to-let schemes come with quite a few legal responsibilities and other landlord responsibilities. You will either need to put in the work yourself or hire a trusted pro to ensure that the property is safe, insured and well-maintained. Many property owners make it easy on themselves by working with a letting agent who handles all these tasks for them, including finding and vetting tenants, drawing up contracts, collecting rent each month, and more.
Get Started with Griffin Residential
If you’re a first-time homebuyer just getting into property investing, there’s no replacement for having a trusted real estate agency to guide you through the process. If you are in Thurrock, Havering or the surrounding area, get in touch with Griffin Residential to learn more or to get started with your first buy-to-let property!
