With demand for property in central Somerset being what it is today, there is a lot to be said for considering the buy-to-let market in the area. Many people are priced out of the property market and this means that there is significant demand for rental options, which is a good way for many people to generate income.
If you are thinking of purchasing a buy-to-let in central Somerset, here are our top tips.
Do your sums for a range of outcomes and know your budget
Before you commit to any move in the property market, you need to know all about your finances and what you can afford. You should know your budget inside out, which means you have to be honest about all of the income you receive and all of the money you spend. Some of the steps you need to consider when calculating sums include:
- What mortgage you can afford
- How much leeway you can afford if you fail to rent the property out
- What rental yield you expect to earn and what rental yield you need to make a profit
- What other costs are associated with buying and maintaining a rental property
These are all questions and calculations you need to work out before you commit to purchasing a buy-to-let property.
Know what sort of landlord you want to be
Do you want to be a hands-on landlord, providing personal support and services or do you want just to receive income? These are both valid options when it comes to operating as a landlord but if you are keen to be the latter type of landlord, it makes sense to find a reliable property management company in the area you want to buy.
Working with a specialist firm who has experience of the area you want to let property will increase the likelihood of finding good tenants, of bringing regular income and minimising the risk and stress associated with a buy-to-let property.
Research and know the area
If you are local to central Somerset, or you know the area well, you will have a head start when it comes to local knowledge. Local knowledge is essential because this helps you to determine the best areas, it allows you to offer advice to tenants and it means that you come across as someone that can be trusted and relied upon.
Of course, to make the best decision, you want to have local knowledge of the property market. Knowing the average property prices and the expected rental yields for the different areas of central Somerset will allow you to make a more informed decision about what area is best to invest in.
Buying property is the biggest decision people make in their life so make sure you carry out the research that is expected with such a major decision.
Know who is most likely to be looking to rent the property
You will also find that different areas are more suitable for certain tenants. Central Somerset has proven itself to be an area that is welcoming for families with young children and this may well be the demographic that is more likely to buy a home. Therefore, investing in a home that is appealing to this style, say a three bedroom house as opposed to a one or two bedroom flat, will increase the likelihood of renting the property out.
Understand it is okay, and sensible, to seek help
Operating as a landlord is a major task and many people underestimate how much work is involved in the process. It is sensible to seek help to ensure you provide the best standard of service that you can. Whether this means knowing which local handymen and professionals to trust or which local property management firm will provide the best standard of service, knowing who you can rely on will make the process of investing in buy-to-let properties in central Somerset so much easier.
Hopefully these top tips will help you in the purchase of buy-to-let properties in central Somerset.
About Tom Morgan
Founder of Jungle Property the multi award-winning letting agent based in Glastonbury, Somerset. I am passionate about property and Glastonbury and about providing the very best advice to anyone who wants the best return on a buy-to-let property investment. For an open and brutally honest opinion on anything in the Glastonbury property market please contact me via tom.morgan@jungleproperty.co.uk
- Web |
- More Posts(119)
