Not a new phrase but certainly one that remains important and never more so than when you are buying a house to rent out. If you are a landlord ready to make your next investment, or you are new to the game and about to buy your first property to let, remember location is crucial. After all you want to maximise your investment with the minimum amount of stress. Here are a few of Northwood Insurance’s top tips of things to consider:
- Firstly and perhaps most important, is to remember that it won’t be you that will be living there! As much as you may love a particular town, tenants might be looking for something completely different. Properties in locations unknown to you could prove most valuable, so think outside the box.
- Investigate the average rent prices in the area. The amount of rent you can charge will determine whether your mortgage payments will be covered. You may even realise that you can command higher rent prices, increasing the return on your investment.
- Take the time to understand the local area. If an area has a lot of properties that are cheap to buy take the time to find out why. If it is a hot spot for crime you may struggle to attract tenants.
- The proximity to local amenities such as schools, doctor’s surgeries, shops, cinemas and restaurants will vary in importance depending on who you are looking to attract. Are you looking to attract a family, or prefer a retired couple? The location you choose will contribute to your prospective tenant’s decision making process. Convenient locations may contribute to quick letting and could make your property popular.
- Before you make your purchase it’s worth checking whether you are purchasing in a flood prone area, or one that is at risk of subsidence. Factors like this can not only affect the cost/ease of arranging insurance but also give yourself and your future tenants difficulties further down the line.
By choosing the right location for your property, you are more likely to get the maximum return on your investment. After all a desirable property in the right location should help you achieve quick lets at the right price.
If you would like to discuss this article please get in touch with Northwood Insurance via 01905 887 837 or email email@example.com.
Northwood Insurance Services and Northwood are trading names of Jelf Insurance Brokers Ltd (Reg No. 0837227), which is part of Jelf Group PLC (Reg No. 2975376), and is authorised and regulated by the Financial Conduct Authority (FCA). Registered address: Hillside House, Bowling Hill, Chipping Sodbury, BS37 6JX. (Registered in England and Wales). Not all products and services are regulated by the FCA.JIB148.06.16