Essential research for potential landlords

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by: bythesea
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Word Count: 503
Date: Tue, 12 Jul 2011 Time: 3:39 PM
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Buy-to-let properties continue to be an attractive proposition for UK investors despite the recent global economic downturn. While it's true that uncertainty regarding house prices over the next 12 months mean that investing in property is a potential short-term risk, the predicted uplift in the market over a longer time period make buy-to-let ventures a viable long-term investment.

It's still as important as ever, though, to be fully prepared before committing to such a purchase. By making sure they have all contingencies covered and all possible information at their disposal, would-be investors maximise their chance of a profitable purchase. With that in mind, here are a few things to keep in mind for those looking to enter the market.

Be well read

An investor setting out on their first buy-to-let venture should be sure to do their research, learning everything they can about the benefits and potential pitfalls associated with these kinds of deals. For instance, it's important to be armed with as much relevant information as possible when choosing landlord insurance - go with a provider you feel completely comfortable with, and if you don't understand any are of the policy you've chosen pick up the phone and clarify it.

Get out and about

Putting a lot of effort into identifying an up-and-coming area is an buy-to-let investor's best chance of making real money long-term. Opting for an already-popular town will be a safe option to a certain extent - but prices will obviously be higher than areas that have the potential for expansion or improvement. Good transport links and well-regarded schools are examples of strong features in potential investment areas.

Move out of your comfort zone

While it's undoubtedly logistically simple for an investor to purchase a property near to where they live, they could be missing out on huge untapped potential. By taking a look further afield and weighing up all available options, an investor increases their chances of finding that perfect buy-to-let property. Living away from the investment property needn't be a negative, either; letting agents will generally be more than happy to keep an eye on the house as part of the arrangement.

Take a step back

Another mistake that prospective investors make on a regular basis is getting hung up on selecting a property that they would personally like to live in. They should instead have a target customer in mind when selecting the area and picking a property to suit the profile of that person - be they student or young professional. By identifying that ideal tenant they'll find it much easier to narrow down the list of potential properties.

Get the right price

First-time buyers are generally regarded as the people with all the power when it comes to house price negotiation but the fact is that buy-to-let investors are in a very similar position. With no backward chain to throw a spanner in the works, buy-to-let purchasers are seen as ideal buyers and so they should use that to their advantage when bargaining on price.

About the Author

For more information about landlord insurance visit www.directlineforbusiness.co.uk