Ten tips for buy-to-let: Essential advice for property investment

If you’re interested in taking your first steps into property investment, read our guide below on ten essential tips to consider.

  1. Do your Research

Do you know the risks and the benefits of investing in property? If you’re not sure what the risks are, you may want to take a closer look. Compare different types of property investments and compare other types of financial investment too. That way you can be sure you are maximising the real potential that your money..

  1. Choose a Good Place to Invest

Invest in a home that’s located in a good place to live. Does it have good transport links? Are the local schools good? Match your potential property with the type of people that would like to rent or buy in the area.

  1. Do your Sums

Work out what the costs of local houses are and how much you’re probably going to earn in rent. Some lenders want the rent to cover 125% of the mortgage payments in addition to a 25% deposit.

  1. Shop Around

Don’t accept the first mortgage offer you receive, shop around and get the best for your money. Speak to an independent broker and find out which type of mortgage is good for you.

  1. Who is your Ideal Tenant?

Think about your ideal tenant, what do they want from a property and who are they? If you plan to rent to students the property needs to be comfortable for shared occupation. If you’re renting to young professionals or families you’ll need something modern.

  1. Invest for a Long-term Income

While some people have been lucky enough to become property millionaires, you should invest for the long-term. The rent your prospective tenants pay should be your most important return for your buy-to-let property.  

  1. Think About Improving a Property or Looking Elsewhere

Buying a property so you can improve it is a good way for you to boost your investment’s value. However, you’ll need to make sure the price is low enough to begin with. You may also want to consider looking to buy a property in another town if the town you live in does not offer you a good investment opportunity.

  1. Negotiate

Don’t be afraid to negotiate the cost of a house. If you’re not part of a chain then negotiate as much as you please. Know the market, find out what nearby homes are selling for and make an offer.

  1. Know What the Negatives are

Before you part with any cash make sure you know what the negative aspects of buying a property are. If prices fall can you carry on with investing? If prices rise can you put the rent up?

  1. Using a Letting Agent

Do you want to use a letting agent or are you happy to be ‘Hands-on’? Agents will charge a management fee but will deal with any issues that arise. Would you rather deal with the issues and call out plumbers and electricians yourself?

About Us

Slater Forbes are one of the leading property investment companies specialising in off-plan property

20 Years Experience

Please note that Slater Forbes Investments is not authorised or regulated by the Financial Conduct Authority and is not permitted to offer financial or investment advice to UK resident investors, whether or not the intended investments are regulated or unregulated. We strongly encourage all prospective purchasers to consult an FCA-authorised Independent Financial Adviser before committing to any form of investment. This is not an offer to participate in a collective investment scheme as defined in section 235 of the Financial Services and Markets Act (2000) and Investors will not have access to the Financial Services Compensation Scheme or the Financial Ombudsman Service. This website, videos and documents referred are intended to provide general information concerning the proposed development, construction and the management of ”The Development’. The information provided has been prepared in good faith and to give a fair overall view of the Development. Photographs and electronically generated images, furnishings and accessories featured are for illustrative purposes only. All information provided by us at our web site or otherwise is provided on an illustrative basis. This email is for the sole use of potential business partners and/or prospective purchasers. We recommend that all appropriate commercial, tax and legal enquiries and advice is taken before entering into a legally binding contract to purchase a property forming a part of the development. All investments attract a degree of risk and Slater Forbes encourage all clients to undertake their own due diligence. Property prices can fluctuate and the value of your investment may go down as well as up. Prices and financial illustrations are provided as guidance and are examples of the possible discounts, yields and returns that investors could achieve. Copyright in and to this website and documents and videos referred belong to Slater Forbes, which is a trading name of Green Key Sales and Lettings Ltd, which is a UK registered company no 10037602.