With a swinging stock market and low interest rates, now has never been a better time to make a buy-to-let property investment. There are plenty of tips you can use to make sure that you get the best deal and return on your investment.
What If I Don't Have the Funds?
It’s not always practical to get capital from your bank to fund your investment, so what can you do? Even if you’re not familiar with the concept of property crowdfunding, you will probably have heard of the popular platform KickStarter. KickStarter is used by entrepreneurs who don’t have the funds to start their own business venture. Investors can ‘buy’ products or opportunities in exchange for that investment. For a smaller investment, they might receive the product the entrepreneur is raising money for (dependent on success of the project), or a personal meet and greet for higher investments. Property crowdfunding is based on the similar premise, except that in exchange for the investment, investors receive a stake and a return – also called a yield – on their investment, usually on a quarterly basis.
What Else Can I Do?
How can you make sure that you get the best deal on your buy-to-let property investment? If you don’t carefully do your research, your investment could be a huge waste of time and money. This makes it vital to carefully select your property before taking the plunge.
Choose a Promising Area
A promising area might be a reasonably cheap house, but with plenty of amenities, such as local shops, a good school and a good commuting network. Promising does not always mean more expensive: you might have a luxurious 5 bedroom home in the countryside in your property portfolio that you can charge a lot of money for, but if families are looking to live in close commute to the city and don’t want to live where they can’t access certain amenities, you won’t see a desired return on that particular investment.
Consider a Refurbished Property
If you’re not averse to home improvement, a refurbished property could be a perfect buy-to-let property investment. Those in need of renovation can be negotiated on for a better price, and providing you have the means, knowledge and contacts to restore the property, you could make a good return.
Getting the best buy-to-let property investment takes time, care and dedication, but taking these steps will ensure you get the best possible return on your investment.