Top tips for investing in Leicester buy to let property

Buy-to-let has had a bit of bad press in recent times due to the tax crackdown, but it can still really pay off, if you choose to invest in a Leicester house or apartment, helped along the way by Keywest and our top tips for investing in property.

Consider the benefits

With stock market swings and low savings rates, buy-to-let is an attractive financial proposition. Low mortgage rates add to the current appeal, as do increasing tenant demand and rising rents.

Research the market

Don’t jump into a property investment. Do your homework and make sure that owning a buy-to-let is the right choice for you and your circumstances. There is no doubt that investing in property can pay off handsomely, in terms of both capital gains and income, but you need to go into it armed with a good knowledge of the market.

Pick your place

Picking a promising area can be key to buy-to-let success. This doesn’t mean necessarily going for the cheapest or most expensive areas. Instead, it means choosing a place where people actually want to live. Think about areas with good transport and schools, for example, and make use of the extensive local knowledge available from the Keywest team.

Do the maths

Write down how much you’re planning to spend on a buy-to-let property and how much rent you can realistically get. You should be aiming to cover at least 100 per cent of your mortgage, plus another 25 per cent, because this is what lenders are likely to want. Factor in the cost of maintaining the property and think about how you would deal with any changes in your circumstances.

Shop around for your mortgage

Don’t just plump for your own bank because that seems like the easiest option. Shop around for the best buy-to-let mortgage deal and take advantage of expert services. At Keywest, for example, we can put you in touch with an independent mortgage advisor to help you out.

Think about target tenants

Consider who will want to live in the property you are thinking about buying and what your tenants will want. Young professionals, for example, are likely to want a modern and stylish finish, whilst families may put outside space and storage at the top of their lists of priorities.

Go for the yield

Don’t be tempted to over-stretch and be too ambitious. Invest for income rather than shorter-term capital growth. Go for the best possible rental yield and remember to consider costs such as tax, maintenance and other expenses.

Consider a renovation project

Don’t discount properties which need a little work. These can offer great value for money and the potential to add value.

Before committing, however, do your calculations. The ideal scenario is that a refurbished property will be valued at the original purchase price plus the cost of the renovation work plus another 20 per cent – at least.

Think of the bigger picture

Before taking the plunge, think about the practicalities of being a landlord and how it is going to work for you. Consider whether you’re planning to rent out your property yourself or ask an agent, such as Keywest, to do it for you.

Call us today at our office at Hinckley Road 01162 544 555, or Queens Road 01162 544 543.