Top 5 Buy to Let Tips

If you are thinking about investing in the buy to let property market, you might wish to consider some of the following tips on making the most of the venture:

• Do your homework - be certain that this type of investment is the one for you, research the latest news and developments on buy to let investments and rack the brains of others who have chosen such a venture;
• Location, location, location - the location of your buy to let property will be just as important to tenants as your own home is to you. Try to put yourself in your tenant's shoes to judge what makes a promising or prime location;
• Do your sums - you will need to know the cost of your investment and the return you can expect from it. Conventional wisdom has it that buy to let lenders will be looking for a rental equal to at least 125% of the mortgage repayments and a deposit of at least 15% and more typically 25%;
• Shop around - there are still many buy to let mortgage lenders in the market, so it is imperative to shop around for the best offers. The same goes for the property you choose to invest in. Shop around and choose wisely. As a buyer, you are free of any onward sales chain, and this gives you additional leverage for negotiating a reduced purchase price;
• Pitfalls - knowing the market and all about the investment business you are in is also a question of knowing all about the pitfalls as well as the rewards. Your plans should include contingency courses of action if, for example, the price of property falls, if you are unable to find tenants, or if the property needs urgent major repairs.