“Buy to let properties are often great investments, but you must look at it as a medium to long term investment and not the means to a quick buck”
We absolutely love it!
Buying a property to rent out is a very popular income-generator for us Brits. Whether you’re a prolific investor with a large portfolio making a living from buy-to-let, or you’re investing in a single property as a sideline or clever pension plan, the opportunities can be rewarding – especially when you have the support of a knowledgeable letting agent in Luton or estate agent in Luton.
It’s really important to research the area you’re thinking of buying in, because this will likely determine the type of tenants you’ll attract. As your trusted letting agent in Luton, we’ll help you with that and provide financial advice on the rental income you can expect, also assessing whether it balances out with the investment you’re about to make.
Do your sums
As you would with any business, you need to plan and figure out what kind of money you could make from the property before committing
To calculate the percentage gross rental yield on your investment
(total income per year ÷ the value of the property) x 100 = % gross yield
To calculate the percentage net yield
([total income – total costs] ÷ the value of the property) x 100 = % net yield
To calculate annual running costs
mortgage repayments + estimated refurb costs + vacant time (estimate 30 days per year) + service charge and ground rent (if the property is leasehold)
And our last piece of advice...
Set a realistic rent. Setting a high rental value will put off tenants and could increase the amount of time your property is vacant. This means you’ll be forking out money, but there’ll be none coming in.
This is our super-quick guide to buy-to-let. Of course, there’s so much more to the process and every case is different. That’s why we recommend you speak to our experienced team at Ideal Properties – your dedicated letting agent in Luton and estate agent in Luton – and seek independent advice tailored to your situation.