How do I become a Landlord?
The past decade has seen the rise of the BTL landlords. Lettings in Beckenham and surrounding areas have been snapped up quickly giving landlords a fantastic return on investment (ROI) not only from the rent but from the increase in property value which intern has allowed them to realise equity from the property and continue to grow their portfolio.
Interest rates at the banks are all time lows so even tying your hard earned cash in to a fixed term will still only be for a low rate.
First you need to identify if you want to buy a fixer upper or something that will rent out straight away. There are pros and cons to both. With a fixer upper you may be able to pick it up slightly cheaper. However, in this market that is proving difficult still. Something like this you can add value too and make sure major aspects of the house are new, fit for purpose and not going to keep going wrong making your tenant call every 5 minutes complaining. The con is the time being spent renovating it is dead time. You are not receiving any rental income and you will have to be paying your mortgage still so this will need to be factored in to your figures.
The alternative is you buy somewhere fit to rent out straight away. The benefit of this is as soon as you own it you can advertise and source a tenant straight away and get them to move in quickly. Little dead time. The disadvantage is you may have paid a slight premium for the property and what you think is all in good order may be masking some issues you didn’t know were there. Or as you haven’t replaced it brand new you don’t know fully how much life it has left in it.
Choosing the right agent can help you source a good buy to let property in the best area for transport links and great schools to ensure a great rental yield and investment growth.