Mar 10, 2020
How to Choose a Buy To Let Property in Essex
Picking the perfect property for a buy to let investment in Essex is challenging. Think with your heart and you may end up with the ideal property for yourself, but not for the rental market. Instead, keep a clear head and look at the potential from a financial standpoint to find the best house or flat for your purposes.
Here are some tips for deciding on a buy to let rental property in the competitive Essex marketplace, with the help of the expert estate agents Essex provides.
Be Clear on Your Budget and Rental Yield
Look carefully at your rental yield and the cost of the purchase. A buy to let investment will not be worth the hassle if you get back less than you pay. Look for calculators online for a quick way to ascertain that your investment will be worthwhile. Make sure you know how much you will pay for insurance, fees, and purchase costs. Also, ensure you have a buffer of a couple of months rent so you don’t lose out if your property is empty for a short period.
Think About Your Ideal Tenants
It is a good idea to have your ideal tenants in mind when you are deciding which property to buy. Who will you rent to – students, families, young professionals? Consider what they want from a rental property and what they are prepared to spend. Check with the company arranging your mortgage if there are any restrictions on the property type and the occupants.
Look Closely at the Area
You may love the idea of living by yourself at the end of a rural track but you are not likely to get as many prospective tenants for this property as one on an established estate next to the train station. Location within a safe area with proximity to good transport links and amenities is likely to generate the most interest in a property, which will mean it is always occupied. Ask your agent about the areas they recommend in Essex with good rental potential.
Make the Best Investment in Your Internal Spec
Buying a property with designer fittings and fixings and a recently renovated exterior will cost you more money than you can recoup through rental. Tenants want a clean, modern and redecorated property but when you go above and beyond this you will take longer to get your money back.
Avoid A Huge Garden
In general, tenants like outdoor space but are keen on an easily maintainable, small space. A large plot that will quickly get overgrown is not likely to attract a lot of interest. A tidy, manageable space is attractive and you should aim for this when you are looking for your house.
Think About Maintenance
The cost of maintaining a property can eat into your investment if you are not careful. Weigh-up the cost of a newer building in better condition with the amount you will have to pay over time in maintaining an older property in a less desirable location.