Find cheap property for a buy-to-let

One of the most common investments made by people with some money to burn these days is a buy-to-let, where you do just that - you buy a cheap property and rent it to other people. You can see why. While shares are unpredictable and a lot riskier, some people who have made small fortunes from their main homes reckon the chances of making a profit from property are better in the long-term. Realistically, no investment has a guaranteed return (apart from sticking your money in the bank anyway). But if you are prepared to put up with the hassles of being a landlord and having to stick with your investment in the long-term, it is possible to make money. Here are some simple tips to ensure you get the right property first time, and the most cash out of it. Find a cheap property The obvious starting point. You will never make money by spending a fortune on a house that has limited rental income potential. To get the right house you need to determine what your core skills are and then do some market research. For example, if you are very practical and happy to take on building projects in your spare time, it would make a lot of sense for you to buy a dilapidated cheap property. It’s easy to add value by taking an out-of-date house and sprucing it up, making it look and feel more modern. Instantly you have turned a cheap property into one that holds more value. And then by renting it out for the next decade or so, it could be worth considerably more than you paid for it. Research the market well before you buy a house. Estate agents don’t say ‘location location location’ for nothing. If you are planning to stick with your investment for a number of years, you need to make sure the area isn’t on its way down. What seems like a bargain cheap property now may actually become a real pain. Find some cash to play with Depending on your attitude to financial risk, you can get your buy-to-let for just a few thousand pounds in cash. There are specialist buy-to-let mortgages available, and some will lend more than 95 per cent of the value of the house. You could re-mortgage your main home to raise funds too. Remember that you are effectively gambling with this debt. You are hoping that the property valuation of the buy-to-let will be greater than the total amount you have to pay back to the mortgage company. And there are risks - if it goes wrong you may have to hand the house back, losing thousands of pounds and possibly damaging your credit rating along the way. Spend as little money as you can This is another way to get the maximum return as quickly as possible. The less you spend on your cheap property the better. Get it decorated in neutral colours that most people will find acceptable. Whatever you don’t try to personalise the property to your own tastes - that’s what your tenant will do. After all, it will be their home, not yours. Quickly find the right tenant The key to making money from your buy-to-let is ensuring you always have a good tenant. You should meet with them to ensure you feel comfortable with them - after all, it’s you that will have to sort the problem out if they trash the place and do a runner with three months’ rent outstanding. Always keep your property full by investing in a good area, keeping the house clean, well maintained and decorated neutrally. For further information on Property search please visit our website at www.propertytoday.co.uk

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