Investing Into Real Estate With Benson Bunch
At Benson Bunch we have assisted many investors with the purchase of a great investment property. Our sales and lettings teams at Benson Bunch have a great partnership and work very closely together. This is why, when investors are looking for rental properties, we are able to find them a suitable property as well as advise them on the type of tenant it will attract. After the purchase, we often assist with letting and managing the property as well. Our lettings and property management services can range from just finding the tenants to full property management including dealing with any issues at the property and getting contractors out for maintenance.
The last few months, our investors have bought several types of properties, ranging from luxurious detached houses to apartments as well as terraced houses in different price ranges. If you are thinking about investing and becoming a landlord, here are a few things to keep in mind.
First of all, if you are buying a property to let out as an investment, you are dealing with a buy-to-let property, which is a property that is bought for the express purpose of being rented out to a tenant or a group of tenants.
There are two ways you can make money with this, first of all by generating income by the rent charged (if it is more than the monthly buy-to-let mortgage repayments, unless the property is a cash purchase) and secondly by the capital gain when deciding to sell.
As a real estate investor you are therefore relying on the increase in the value of the property in the long term as well as the rental yield, which is the income generated from the property expressed as a percentage of the property value. A good rental yield is generally listed at around 5% a year.
When looking to buy as an investment, it is very important to buy the right property in the right location, as it will affect the type of tenant you will attract. Students for example are likely to want to live in somewhere that is affordable and close to universities and nightlife, while families would prefer to be close to schools, leisure facilities and plenty of storage and possibly a garden. Once you have decided which area, budget and kind of tenant you want to target, we would be able to recommend the right areas and properties to you. We will also provide you with details on the rental yield.
What is also important to keep in mind is that as a landlord you will have a few legal responsibilities varying from arranging certificates for fire and gas safety and energy efficiency to protecting the deposit of the tenants. It is also important to check with a tax advisor how to declare your rental income properly. Furthermore, it is necessary to check if the tenant has the right to rent in the UK. At Benson Bunch, we assist with most of these regulations and more that have not been mentioned. We are able to reference tenants, arrange the checks for the certificates and can also take care of all maintenance work at the property.
If this has made you more curious about investing in the area, we would be happy to assist, please get in touch with our team to see what properties we have available that suit your requirements.
01625 523 605