In
this post, you will learn key aspects to be considered when making buy-to-let
property investments.
Income streams
There
are two income streams associated with buy-to-let properties.
1) Rental
yield
It
is the return that an investor receives on a property by renting it. The
calculation is done after deducting maintenance charges and other expenses. To
calculate it, deducting the annual expenses from the annual rental income
divided by the amount invested in the property multiply by 100.
2) Capital
growth
The
increase in the value of the property when you plan to sell it is referred as
capital growth. The factors responsible for increasing the value of a property
include:
●
Rising
demand for the residential properties
●
Development
of the area in which it is located
●
Growth
of the population
●
Increase
in the cost of construction due to inflation
Cost of Buying
Apart
from the cost of property, there are some additional fees you need to pay when
buying a property. This can include survey fees, stamp duty land tax,
solicitor’s fees. You also need to pay the commission to the real estate agent.
Insurance to secure your
investment
1) Landlord
insurance -
Protect your
investment with a good policy, although this isn’t legally required.
2) Building
insurance -
You need Buildings
Insurance in case you opt for a buy-to-let mortgage.
Future of buy-to-let properties
According
to the Office for National Statistics, the population of the UK is expected to
reach 71 million by 2031. The demand for accommodations will also rise due to
this population increase. The buy-to-let properties will meet the demands of
property in the upcoming years.
Targeting older renters
As
per the English Housing Survey 2018-19, there is a rise in the number of
individuals in the age group 55-64 years who rent private accommodations. From
2008-09 to 2018-19, a three per cent rise has been observed. This is why an
investor should focus on this age group too, along with renters in the age
group 25-35 years.
Importance of property valuation
Before
buying a buy-to-let property, you must consider getting an online property valuation report. Doing so gets you the information about accurate valuation of
the property, along with information on rental yield, annual costs, and annual
cash flow. Investment decisions get easier with an online valuation tool.
Finding discounted properties
With
an online tool like Deal Finder by Property Deals Insight, you can find
hotspots of buy-to-let properties with some amazing deals. Strategies like
repossessed property, short-lease, and others can enable you investing at
fraction of the usual price.
Get
more details from here: https://www.propertydealsinsight.com/deal-finder/
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