Your guide to buy-to-lets and our *handpicked* available investment properties!
For many, 2021 is the year to invest in property. With many finding a surplus of money left at the end of each month due to reduced spend on holidays, going out, and petrol, why not let that money work for you in the form of an investment property?
If you’re thinking of investing in a buy-to-let, the first question to ask is, ‘Will it be worth it for me?’ Buying-to-let can be a good way to generate income while also investing for the future – but it can involve a lot of work.
Mortgage
It can help to contact a buy-to-let mortgage adviser even before you get started. They can guide you on the kind of mortgage you’re likely to get, the kinds of properties you could afford, how much rent you could bring in each year, how much tax you’re likely to pay, and – most importantly – how much profit you could expect to make.
Your adviser can also talk you through the likely overheads, such as lettings fees, maintenance costs, furniture and white goods. These costs may affect the size of the mortgage you can obtain.
Another point to discuss is your deposit. You will need at least 25 per cent for a buy-to-let mortgage, and to get the better mortgage deals you should aim for more like 40 per cent.
When you and your adviser have gathered all this information, you should have a better idea about whether buying to let is right for you. If you’re still keen, you can set about finding a mortgage.
Choosing a property
Think about the kind of tenants you want. Do you plan to let to students, young professionals, families, or perhaps people moving to a new house and looking for temporary accommodation? Your choice will determine the kind of property you should buy, and where to search for it.
A good rule of thumb is to know your area. Don’t buy in any location you don’t know well, even if prices are very attractive (there’s usually a reason for that). Also be wary of buying far away from where you live, even if you have a good letting agent – you’ll still want to check up on things now and again.
Your local letting agent should be able to show you properties which are perfect for your situation!
Furnished or unfurnished?
Again, the choice depends on what kind of tenants you want. Families tend to want to bring their own furniture, but young professionals and students usually prefer furnished places. In general, most people would like white goods to be provided. Bear these costs in mind during your mortgage application.
Stamp duty
If this property is not your only property, you’ll have to pay at least an extra three per cent on top of your regular stamp duty. Factor this in during the budgeting stage.
Selecting a letting agent
If you don’t want to spend time on a lot of admin, letting agents will do the hard work for you. They’ll find you tenants, run the necessary credit and legal checks, take care of the maintenance and collect rent on your behalf.
Do some more digging into what the agent offers. Find out how they’ll prove that they’re managing the property well and read their terms and conditions thoroughly.
Running your buy-to-let business
Even if you let only one property, buying to let is essentially a business and you should run it like one. If you own more than one rental property, it can really help to get an accountant on board to help keep things tax efficient and maintain your cash flow.
Remember that the money you receive in rent counts as income, so is exposed to income tax.
Now we’ve covered the basics of buy-to-let investments, let’s take a look at some available properties which are perfect to rent out…
Two-bedroom apartment situated on the East Cliff of Ramsgate, The Lawns, Victoria Road. Internally offering entrance hall, lounge, kitchen, two bedrooms and bathroom with matching suite. Located within walking distance of cliff top walks and a short stroll into Ramsgate town. This apartment is rented out achieving £650 per calendar month.
Three-bedroom property arranged over three floors, in the popular location of Bolton Street, Ramsgate. Comprising lounge, kitchen/diner, family bathroom, three bedrooms, study area and a rear courtyard garden. In our opinion the property has been well maintained by the current owners and will make a great buy to let. Further benefits include double glazing, gas central heating and being located within quarter mile of the Ramsgate train station with its fast service to London.
A sought after converted apartment in Millers Hill, Ramsgate. The historical Grade 2 listed, former Hovis flour mill in Ramsgate has been transformed into a mix of contemporary residencies. Internally offering a wealth of accommodation comprising entrance hallway, 2 double bedrooms, modern bathroom and en-suite to the master bedroom. Both bedrooms benefit from built in wardrobes. The property includes allocated parking.
This elegant home set within a conservation area is built in the period, style and sympathy with property in its surrounding area of Liverpool Lawn. The house comprises of entrance hall, cloakroom, lounge, beautifully present kitchen/diner fully integrated offering high ceilings throughout. The first floor offers two double bedrooms, one concealing an en-suite and the other currently used as a second reception room. There are two further double bedrooms to the top floor and family bathroom. The location is highly desirable with quick and easy access to Ramsgate town and Royal harbour.
Purpose built two double bedroom flat with an allocated parking space with a tenant in situ paying £650pcm which includes the gas bill. The building has a lift to all floors and the flat has two double bedrooms, a lounge with views over the roof tops to St Georges Church, a kitchen and bathroom. There is a video entry phone and plenty of storage space in the hallway.
3 flats in a single building producing a yield over 5%. Located on Canterbury Road being within easy access to the station and the old town. The building consists of 3 one-bedroom self-contained flats with the lower ground floor flat having its own private garden. The building is double glazed and makes an ideal buy to let investment.
If you would like any more information on any of these properties, or to see a video tour, please get in touch with your nearest branch!