If you have been thinking about a buy to let investment property, you might be a little nervous because of recent economic events.
The fact is, economic trends always move in cycles.
This includes property values, mortgage rates and the popularity of different types of investments.
When it comes to buy to let, remember that as long as people are letting houses and flats, there will be opportunities in this kind of investment.
Here are four factors to keep in mind for any buy to let property: Location: Think of the Future as Well as the Present The location of an investment property is possibly the single most important factor.
It's surely the first thing you --or a prospective tenant-- will notice, even before entering a house or building.
When you look at the location, you have to consider the future as well as the present.
Is this an area that people are likely to want to move into or do business in? You should research as much as you can about the location.
It's best to buy a property in a place with which you have some familiarity.
If it's outside your usual travels, you should at least visit it at least once.
Statistics, such as the economy, demographics and crime are all important, but so is your general impression of a place.
In looking towards the future, you can inquire about what, if anything, is being built or planned, including businesses, residential properties, highways and so forth.
No one can predict exactly how things will be in a particular place, but if you look at all the indicators you can at least make an educated guess.
The Property: Suitable for Letting? When you look at the property, try to see it through the eyes of someone who might be letting it.
If you were such a person, does it look presentable? How convenient is it to downtown areas, major roads, public transportation and schools? You also have to look at the property as an investor, of course.
As with the location, you have to consider the future -especially the near future- as well as the present.
If you are seriously considering it as an investment, you will no doubt have it inspected.
In addition to any immediate repairs, will it need any significant work done in the next two years? If so, this can be something you can use to negotiate a lower price.
Financial Considerations For a buy to let investment to be profitable, you have to be able to do an accurate estimate of your costs versus the revenue the property will bring.
This may sound obvious, but many investors do not consider all of the expenses, or they overestimate the income they will be generating.
One crucial factor is that you must have tenants to generate income.
You always have to be ready for the possibility of times when no one is letting the property.
This is something you have to be able to absorb if necessary.
These are some of the things to consider before entering a buy to let investment property.
If you choose carefully and do the research, this can still be a profitable opportunity for UK investors.