For a while, investing in a buy-to-let property was majorly about yield. In recent years however, the tide has changed subtly to a mix of yield and capital growth. This has done more to blur the lines between investing in a buy-to-let property, and investing in a small business. Therein lies the first tip you should hold dear when making your first buy—take your property as a small business.
Do your research
In other words, know your market. When you are targeting Houses for sale in Weymouth for example, you have to establish your local competition. Next, you monitor sales and letting listings in the Weymouth area. While you do the grunt work, you should keep your eyes on price trends and the relationship between the trends and the neighbourhoods. Such that, when a good opportunity turns up, you should be able to recognise it and snap it up quickly.
Information is very important. The whole point of doing your research is to gather vital information. Moving from numbers and correlation however, you should meet up with other property investors and letting agents. These groups can offer valuable advice and tips, because they know the market in-depth. This is not a one-time thing either, you need to keep communication flowing to be aware of emerging opportunities, changing economic climate, and what not.
Watch your finance
Houses for sale in Weymouth have good potential and will also have fierce competition. This is why before you go searching and entering talks, it is recommended that you find a mortgage and work out a clear investment budget. In general, pro property owners have an average loan to value of 50%; the range is 40% to 60%. Nonetheless, you should seek independent financial advice to make certain that your strategy is financially sound, your chosen estate agents can point you in the right direction.
Good luck!What you should know about buy-to-let property by Mark Freedman
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