7 Simple Tips for Buy-to-Let Success

1 Be clear on your strategy – are you investing to replace an income, for capital growth? Research which buy-to-let model will work best for you. Get educated, and invest time in learning.

2 What funds do you have available and what borrowing can you get? The lending market is a very different place from 10 years ago.

3 What time do you have? Are you looking for hands-off investments or will you be running your own business? Get a good team to work with: mortgage brokers, builders, solicitors and so on. Property can be a very lonely game and is increasingly regulated. Mistakes can be costly.

4 Research your investment location: know your market, your customers (tenants) and any planning and licensing requirements.

5 Pressure-test your investments against higher interest rates. Would you still have a positive cash flow?

6 Identify opportunities to add value to all your investments. Benefits can be realised when and if you refinance.

7 Most importantly, have a plan. What are you going to do, where, how, and what is your key driver? How will you finance your purchases and refurbishments, and what is your exit strategy?

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