Buy to let has always been an attractive prospect but it is not without its financial risks. To get the best return on your investment it is important to choose the right location for your property, and also to manage it within your own budget. Recent news reports show that landlords with property in Essex and other areas in the east of England are currently enjoying success with buy to let – more so than in other areas of the country. Braintree, Brentwood, and Borehamwood are some of the places where you can find great rental growth, and develop a profitable buy to let business.
Buy to Let in Essex
Buy to let investors have largely been priced out of the market in many areas of central London, and areas to the east – In Essex and even in Suffolk and Norfolk – are more popular because buy to let investors get a better rental yield (and therefore a better return on investment.) Houses for sale in Braintree, for example, have relatively low asking prices compared to areas within London, and are much more affordable for investors. Braintree in particular has been attracting people who are looking for a more peaceful, community-style life outside of London, while still being able to commute into the capital. A typical house with two bedrooms in Braintree costs £180,000 – well within the means of many buy to let investors. Given that there are many tenants looking for property in Braintree, it makes sense that a flat or house in this town will be snapped up quickly.
Buy to Let Tips
Buy to let can be a profitable and enjoyable way to earn money but you need to make sure your tactics are sound. Buying property to rent out is one way to make a regular income but you must manage your borrowing and ensure you do not over-extend your finances. But it also helps to understand how you can make a profit by working out the optimum deposit, borrowing, and rental combination. Checking that you are buying within your means while also allowing for optimum returns is essential.
It is also important to choose a property to buy with the express intention of renting it out. You need to consider your tenants when you buy. Newer properties are better, and properties with two bedrooms are also generally successful for the rental market. You also need to buy in an area where there is high tenant demand – not necessarily in the area where you would want to live yourself. Consider the areas where young professionals will be likely to rent, for example with good transport links and access to amenities. By considering the needs of your future tenants you ensure that your property will be high demand and will therefore supply you with the rental income you need to cover your costs and make a profit.
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