The Top 3 Things to Consider Before Investing in a Buy-to-Let Property
Category CEO's Message
Thinking of investing in residential property with the aim of a long-term rental? We don't blame you.
With the property market dangling tangible investments that can either create wealth or create a passive income-now is the time to snap up a prime piece of property and start generating some serious rental revenue.
But having a buy-to-let property means joining the union of real estate-a huge industry you probably don't know much about. To ensure a buy-to-let property that can yield high rental returns, there are a few things to consider.
1. Crunch the numbers
Sensible property investment requires due diligence and realistic financial projections, so foremost, you must consider the potential rental yield on the property. Do this by calculating the annual rental income minus expenses like rates, insurances, taxes, and maintenance. To get a realistic rental figure, divide this number by the price of the property. It's important to highlight that high property levies and taxes could make it a poor investment choice, so buy with your head and not your heart.
2. The Real Estate mantra: "Location, Location, Location!"
Real estate has produced many of the world's wealthiest people, so there are plenty of reasons to think that property is a sound investment. That said, there's a strong demand for long-term rentals-but only in the right areas. Choose an area with low property rates close to public transport, universities, parks, malls, and restaurants. Also, keep in mind, that a neighbourhood with a low crime rate will mean a larger pool of potential renters.
3. Consider a Property Management Agency to manage your rental
Managing a rental on your own does not necessarily mean you will save money - especially if you work full-time or you lack the support to handle the legal issues and formalities that come with long-term renters. From price optimisation, listings, tenant screening, lease agreements, supervision and management of property, upkeep and maintenance, and evictions to the overseeing of any property emergencies - Tyson Properties will ensure your buy-to-let journey is hassle-free.
Start looking for a buy-to-let property NOW!
Investing in a buy-to-let property can generate a passive revenue stream, tax benefits, and equity over time. However, real estate investing requires due diligence to ensure that you get the best ROI.
So, what are you waiting for? Give Tyson Properties a call to learn more or to get started now. Let's Talk.
Author: Tyson Properties
