Heard that you can make a quick buck from property? While investing in property is not the best way to make money fast, it is a solid long-term investment that will pay dividends over time.
If you are thinking about investing in property but you are not sure where to start, then the below blog is just what you need. Read on to find out everything there is to know about making money from buy-to-let properties. Plus, where to find the best properties for your budget.
Table of Contents
Identify Rental Demand
One of the most important factors that you need to consider when investing in a buy-to-let property is the rental demand or, more specifically, high rental demand.
If there is no demand for your property, then it stands to reason that you won’t make much money from it. Therefore, you need to make sure that you research the rental demand of different areas and property types before you sign on the dotted line.
Look For High Rental Yields
The rental yield of a property is the amount of money you will make from your buy-to-let investment. Ideally, you want a rental yield of at least 5% – any lower than this, and you are significantly limiting your potential earnings.
When it comes to high rental yields, big cities tend to come out on top, with Liverpool boasting the highest rental yields in the UK.
Think About Capital Growth
As well as rental returns, capital growth returns are also important and will determine how much money you can make from a property.
When researching properties to buy, make sure that you look to see if an area has a good track record for capital growth and strong future growth predictions. Off plan developments are also known for their strong return on investment.
Although it can be all too easy to only think of making money as quickly as possible, it is also wise to consider the long-term aspect of your investment.
Attend Networking Events
If you are new to property investment, then it can be helpful to attend networking events, both online and face-to-face, as these can help you to build valuable connections and help you to find the best properties.
Don’t worry if you are new to networking as well as property, as there are lots of great networking tips online that promise to help you network like a pro in no time.
Keep Your Tenants Happy
Once you have bought your first buy-to-let property and found tenants, the most important thing to remember is that you need to keep them happy.
Reliable tenants are worth their weight in gold, so once you find them, you need to do all it takes to keep them! Make sure that you keep on top of any maintenance and be available when they need to get in touch.
If you do not want to look after your tenants yourself, it can be a good idea to hire a property management company to do this for you.