Becoming a landlord for the first time can be a daunting idea, but it doesn’t have to be. There are a number of mortgage deals available that first time landlords can benefit from. Whilst you may be aware there are new laws, which can make being a landlord a bit trickier, becoming a landlord is still great way to increase your income or make a long term investment.
In this article we’ve included some great tips for getting into the buy to let market that we’re confident any first time landlord would benefit from.
Read a bit about being a landlord and even better, speak to someone that is already a landlord. Make sure it is an investment you would like to make, as there are other opportunities to invest and grow. Investing in property has paid off nicely for some but it is important to go in aware of the advantages and disadvantages. So speak to other landlords and also it might be worth speaking to financial advisers, as well as letting agents if you don’t think you want to go it alone.
Choose your location wisely
Look at the market, see where there is demand to live and see if it worth your investment. It’s key to find a location that will grow in the market and give you a good income.
Work out costing
You may think it is an obvious, but make sure you work out what you expect from your property. How much are you willing to invest and how much you expect to get back. You need to be aware of different legislation regarding tax and also tenant and landlord fees. Reading up on these will limit any surprises you might encounter.
Make sure to ship around for different mortgage products. There are many appealing products available and by speaking to a mortgage adviser they will help you get the best product fro you circumstance.
Have you thought about the type of tenant you would like to attract? You might want to choose your property and décor in consideration of the type of tenant you would like. You may want consider letting the tenant but their decorative input on the property – these tenants often stay longer and take better care of the home.
Finding a fixer-upper
A lot of people look to invest local to their own home. Although there are positives to this route, it may not always be the best investment. Think about expanding your search further and look out of tired properties or those in need of renovation. You may be able to find a better deal as they can be done up to add more value.
As a buy to let investor you have the same benefits of a first-time buyer when it comes to negotiating on a property. You are a less risky option for a sale dropping through and if you do your research you will have a good idea what a property should be worth.
Hands on or off
It might be worth thinking what sort of landlord you see yourself being. Renting and managing the property yourself can be more lucrative but can be quite demanding of your time and resource. Think about things like viewings, advertising and maintaining the property. If you don’t feel confident about managing all that by yourself, it might be an idea to get in touch with a letting agent who will be able to give you some options on how they can help.
If you’re looking at buy to let options at the moment, it may be worth getting in touch with some letting agents and mortgage advisers if you haven’t already. You don’t necessarily have to use their services but a conversation will give you a lot to think about.
Embrace Financial Services will certainly be able to arrange an initial appointment either over the phone or in person to talk to you about an mortgage advice you may need.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Embrace Financial Services usually charges a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £499 to £999 and this will be discussed and agreed with you at the earliest opportunity.