The buy-to-let game has never been a better one to start playing. With house prices shooting up and wages remaining largely unmoved, people are turning to rental properties more and more.
And for a landlord, investor or indeed, the average Joe, this presents a fine money-making opportunity. Buying rental property to then turn into a small side business is a great way to earn more income, or even plan for retirement.
So, if you’re looking for more advice on the subject, or are looking to get started, here’s your one-stop guide. From IRA’s to letting agencies, we’ve got you covered from every angle.
Look for property that’s appealing to people
It goes without saying really, doesn’t it? Yet, you may be surprised what the consumer is looking for. Don’t focus on the most flashy property; look for one that’s in a convenient location. People like to be near shops, stations and other local amenities.
Additionally, avoid areas that are quite unpopular or run-down. These may be great chances to improve a property, but you won’t make any cash for a while.
Grow your property investment tax-free
If you’re using the property to plan for retirement, you can also make things tax-free in one fell swoop. This is the process of real estate IRA, and for older investors it’s a process to consider.
Income made on rental properties bought through an IRA are offered unique tax advantages. If nothing else, this can help you increase the amount of cash you can make on the initial investment.
A letting agency can help manage your property – but beware
If you’re new to the rental property game, you may need the help of a letting agency to keep things in order.
Letting agencies will help you with most aspects of the rental property process, and as such, can prove to be valuable assets for newcomers.
But, beware of two main things. Firstly, the price they charge for their services. You’ll have to pay the letting agency a set percentage of your rental income. This can be a figure as high as 10 percent or as low as 5 percent. So shop around. Don’t stick with the first deal, and try and negotiate a lower fee.
Secondly, watch out for any additional charges your letting agency may insist upon. If your rental property has a broken window, some agencies will charge a small fee to arrange the repair for you. But make sure to not fall for these tricks – you’re already paying them.
Look outside your local area
There could be an even better property down the road, or in the next town. Purchasing multiple properties across multiple locations allows you to supplement one with the other. One not performing so great? Well, your flat in the other town is! You can find better deals and better investment opportunities by branching out.
And with that, you’re gained some valuable insight into the world of property investing! It’s not going to be an easy process, but with the right approach, it can become very lucrative.