Buy to let property type
If you are purchasing a property to let,
then you will need to consider the property type. Are you looking for a flat or a house?
Considerations in the choice of
property
- A 2 bedroom property will be easier
to let/sell than a one bedroom property.
- Consider the rent/mortgage cover
for each property type.
- Where is the demand - where do
tenants prefer to live?
- If there is a garden - who will
look after it?
- What is the maintenance bill likely
to be?
Look at each item in more detail
- The more bedrooms you have to
offer, the wider the appeal. More rooms generally
means more rent.
- The rent/mortgage cover. This is
perhaps the most important consideration. By how
much does the rent cover your mortgage payment. If the rental
income will only just cover the mortgage payment
then you will not be able to build up a fund to
cover you for periods when the property is empty. If
the market rental income is insufficient then you
may find it difficult to get a mortgage.
- Where do tenants prefer to live.
This is best answered by a letting agent who will
have extensive experience of letting in the area you
are considering.
- A large garden may be a huge plus
to a gardener, but if left unkempt, could develop
into an ongoing problem. You could employ a gardener
but this will be another outgoing to contend with.
- You can budget for mortgage
payments and other regular outgoings. It is less
easy to predict repair and maintenance costs. As a
landlord you will be responsible for repairs and
maintenance issues. Tenants are likely to demand a
swift response when things go wrong. A modern
central heating system is likely to be less of a
problem than an old system. If your property is
thatched then you should budget for re-thatching
perhaps every 10-15 years at a cost that could
exceed £10,000. If you buy a property with a flat
roof then the flat roof will need replacing over a
similar length of time.
Wooden windows will need
regular maintenance if they are to last. Such
maintenance will need to be considered .
next...HMO
and buy to let
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