Contrary to prophesies of a UK housing market crash, property remains a sound investment. The stock market has been depressed for decades, and long-term low interest rates have made savings vehicles barely viable. Yet the value of property continues to rise, which has sustained the buoyancy of the Buy-to-Let market. If you can make a profit just by owning your home, why not repeat the same trick and make money not just from the long-term accrued value of a property, but today – and regularly – with monthly rental income?
It’s important to look for property in an area with potential, somewhere that is on the rise. It might be a neglected district that is about to undergo regeneration, a city soon to benefit from improved transport links, or perhaps a university town where rental accommodation is always in demand.
You should also find out as much as you can about the local rental market so you know what the competition is like and can focus on finding something distinctive. You don’t want your property to become invisible because it looks like everything else. And if you’re going to manage the property yourself, you’ll need to find somewhere that is easily accessible for you.
Keep in mind that this is a business decision. It’s not about falling in love with a property; it’s about practicality, marketability and identifying the maximum commercial potential.
The Business of Conveyancing
There may be fewer tax breaks for the buy-to-let owner these days, but this means more of a dent than a disaster. The Treasury has done little to reduce the attractiveness of rental income, and there are some excellent finance deals available, as you can see on the NRLA website.
A vital early step is securing a mortgage, unless you are fortunate enough to be able to buy outright. Don’t underestimate the amount of legal and administrative legwork that needs to be covered. The conveyancing system, particularly in England and Wales, remains convoluted and confusing despite many attempts at reform. Choosing the right conveyancer is very important. Of course, cost is a major factor, which is why it is essential to gather a wide range of conveyancing quotes. For most solicitors, this work is their bread and butter. You should also consider Licensed Conveyancers, whose entire business is focussed on property transactions.
Collecting conveyancing quotes one by one can be very time-consuming, so it’s worth looking at companies that will gather them for you based on your specific requirements, such as https://www.samconveyancing.co.uk/conveyancing-quote. Concierge conveyancing is also much more than a gateway; it can be hugely helpful in maintaining efficient lines of communication throughout conveyancing processes that can be notoriously frustrating.
Finally, make yourself familiar with the legal responsibilities of a landlord – insurance, licences, safety obligations – and always choose your tenants carefully. Remember that a good tenant paying a lower rent is usually better than a bad one paying more.