When buying a buy-to-let rental investment it is often too easy only to consider properties that you would like to live in yourself. The first rule of a successful investment purchase is to let your head rule your heart and remember that first and foremost the decision should be based on maximising your return on investment. Here are our suggestions on the top 10 questions to ask before taking the plunge on your next property investment:
(1) What rental price can I achieve?
(2) Is there sufficient rental demand to achieve continuous occupancy without lengthy void periods?
(3) Will mortgage lenders be happy to offer finance on the property? Remember that buildings of non-standard construction, flats above shops and flats in high-rise ex-local-authority blocks may fall out of the lending criteria for many mainstream lenders.
(4) If the property is leasehold, how many years are left on the lease?
(5) How much is the annual service charge and ground rent?
(6) Are the gas and electrical installations up to current standards and if not, how much will it cost to update them?
(7) Is the exterior of the building in good repair?
(8) Does the property still provide the return after all costs have been considered, e.g. mortgage interest, repair & maintenance costs, annual inspection costs, furniture & fittings etc?
(9) Will you still be able to cover your costs if the mortgage rate went up by, 1/2/3 percent?
(10) Will the property be suitable to sell to the wider market (e.g. owner occupiers as well as investors) if you ever need to sell up?
If you are looking to buy a rental property in Brixton, Streatham, Camberwell or any of the surrounding areas we would be happy to help you with any pre-investment advice. Our services include:
If you think you could benefit from any of these services we would be happy to hear from you. Our Brixton office primarily serves the SW2, SW9, SW4 and SW11 postcode areas, our Streatham office deals with property in SW16, SW17, SE27, CR4 and CR7, and our Camberwell office handles property in SE5, SE24, SE15, SE17 and SE21. Click here for full contact details of your local branch.
Brixton Estate Agents: 91 Acre Lane, SW2 5TU / 02073267450 / email@example.com
Camberwell Estate Agents: 8 Camberwell Green, SE5 7AF / 02073587979 / firstname.lastname@example.org
West Norwood & Streatham Estate Agents: 471-473 Norwood Road SE27 9DJ / 02086559000 / email@example.com
Registered Office Address: Beresford Residential Limited, The Old Vicarage, Ston Easton, BA3 4DN. Registered Number 7052432 England and Wales. VAT Number 982 6174 88