Making the most of your money: A checklist for buy-to-let investors

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Total views: 155 | Word Count: 507 | Date: Mon, 17 May 2010 | 110 comments

Although they're not quite seen as the money making machine that they once were following the UK's recent financial struggles, buy-to-let properties are still an attractive proposition for some investors.

While there are short-term risks with property prices potentially falling further over the next 12 months, the purchase of properties to rent can still offer a viable long-term investment. With that in mind, what follows is a five point checklist for anyone looking to enter the market.

Do your research
If you're new to the business of buy-to-let then make sure you know as much as you can about the benefits and potential pitfalls of this type of investment. Also be sure that this is the most efficient use of your money ¬- depending on how far into the future you're planning, you might be better off making use of a fixed rate savings account.

Predict the future
It's all very well choosing an area that has proven a popular destination for buy-to-let investors - but if you can identify an up-and-coming area with plenty of attractive aspects that appeal to renters then all the better. Things to look out for when picking an area include efficient transport links and well-respected schools and/or colleges.

Look elsewhere
Many buy-to-let newcomers will try to find a property near to where they're based to keep things simple logistically. It's often best to check out all available options, however; by looking further afield you're increasing your chances of finding the perfect buy-to-let property. Not being close to the property you buy doesn't need to be a negative; your agent will happily keep an eye on the house at your request.

Make your choice
Don't make the mistake of picking a property that you would like to live in yourself. Who are you looking to attract? Families? Students? Young professionals? Work out what type of tenant you're aiming to market to and then find a property to suit that person's likely needs.

Stand strong
Buy-to-let investors are in a strong position when it comes to negotiating on house prices. There's no chain to worry about, so there's a much lower risk for the seller in terms of having the sale fall through. Use that bargaining chip to your advantage and negotiate a healthy discount. People talk about first-time buyers having all the power in house negotiations but buy-to-let investors are in exactly the same position.

For more information on renting and buying please go to Rightmove.co.uk and check out their Rent Property Guide.

About the Author

Sarah Maple is writing for Rightmove UK, helping you to find quality information, regardless if you rent a property or look for properties to rent.

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