Thinking Buy to Let? Here are Top 10 Tips to help you get it right.

10/07/2018 14:26:24

The Buy-to-let market can be tougher than it once was. Changes to tax on buying property investments and landlord's rental income has contributed to that, but for many people the idea of investing in property still appeals, as they trust bricks and mortar and may feel that they can add value to a home in a way they can't to an investment fund.

A world of low interest rates helps polish the attraction of buy-to-let. Generally, returns on savings are low and mortgages are cheap, however interest rates are forecast to rise and the 3 per cent stamp duty surcharge and loss of full mortgage interest tax relief has eaten into returns, forcing some would be landlords to question if buy-to-let is still the golden egg it was once seen to be.

Nonetheless, buy-to-let remains popular.  What the changes have done, is force many part time landlords to up their game.  The good news is, with the right support team and advice, you can still make buy-to-let properties work well. So, in the spirit of having the right support team, here are Scottish Property Centre’s top five tips and OnPoint Financial’s top five tips to secure the best deal for yourself.

Scottish Property Centre’s – Top 5 Tips

  1. Research the market on buy-to-let: Know the potential returns as well as the pitfalls.  Make sure that you’re comfortable with your money being tied up and not being liquid.  It might be an ISA or the stock market are more suitable to your risk profile and would meet your demands better than a Buy To Let.
  2. Choose a promising area to invest in property: You need to know the up and coming areas to maximise your returns.   Location, location, location really do matter.  Sometimes, which end of the street you’re looking at can significantly impact your returns.  Speak to your local estate agents, we're sure you can think of one good one 😉
  3. Think about your target tenant: Buy the right property in the right place for the right people.
  4. Look further afield or redeveloping a property: If your local area isn't suitable, remember it’s a big world out there.  Sometimes moving your focus just a couple of miles can open up significant opportunity
  5. Consider how hands-on a landlord you want to be?  Do you want the phone call at 3am to say the boiler is making a funny noise, or would you rather sacrifice some profit to give you peace? Letting agents take the strain when you don't want to.  Knowing how you feel about this will make some deals easy to walk away from, and others irresistible.

OnPoint Financial’s – Top 5 Tips

  1. Do the maths on buy-to-let:. Do the sum's add up?  That's where OnPoint Financial can add value to your purchase, we take a holistic view of your aims before recommending the right product.  We often have access to exclusive deals that aren’t available on the high street, it can often make or break the viability of a deal.
  2. Involve your mortgage adviser as early as possible in the deal.  If they operate the way we do at OnPoint Financial, they should be able to help you structure different options quickly so you understand your negotiating position, and the impact of accepting a slightly higher counter proposal.
  3. Don't be greedy, go for rental yield and remember costs: You're not going to get to retire on your first BTL, nor are you buying a Bugatti on it. Play the long game and focus on maximising the rental yield.
  4. Enter the Buy-to-Let market with your eyes wide open. Remember, interest rates can rise, property prices can fall and the Bank of England is looking at the Buy to Let market as a whole, so new legislation may be coming.
  5. Know what your long term plan is.  Many people who come to see us are trying to “wing it”, they’ve found a good deal and just want to see where it goes.  Knowing what you’re trying to achieve, whether that’s a couple of buy to lets, or a successful portfolio can significantly affect the advice we give to help you maximise your returns.

And a final bonus tip!  Don’t be afraid of asking what you feel are the stupid questions.  We’ve heard them all before, and very rarely are they stupid!  It’s always better to ask before you’ve put pen to paper on a deal and it’s too late.


Your property may be repossessed if you do not keep up repayments on your mortgage

OnPoint Financial Ltd usually charge a fee for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.

Scottish Property Centre Shawlands branch introduces clients to OnPoint Financial Ltd for purpose of the provision of advice in relation to mortgage and non investment insurance products. OnPoint Financial Ltd is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

Help and Advice for Landlords

As members of the Scottish Association of Landlords and Council of Letting Agents, Scottish Property Centre pride ourselves on being at the forefront of legislative changes that can impact upon you as a landlord and property owner, and of course your tenant.

If you are an existing landlord or you’re considering letting a property in the near future, our letting team will be more than happy to help.

In addition, all Scottish Property Centre branches work in partnership with fully authorised and regulated mortgage advisors who are able to source from the biggest lenders & protection through their comprehensive lender panel, meaning the most suitable and appropriate mortgage deals at competitive rates are available to us.

Get in touch with your local Scottish Property Centre branch today for more information or arrange an appointment.  

Property Alerts

Get notified about latest hot properties!