A lot of people on the housing market may look at the buy-to-let option and may think that is a sure investment that will make you money. But there are certain factors that need to be looked out for before deciding to go ahead with buying-to-let a property. This the second of the 3 part articles will run you through some useful tips and things to consider before buying a property to rent it out. This second part will show you tips 5 through to 7.

Tip Number 5 – Consider who you want your tenants to be

The first thing you should consider from this second article is to think who your target tenants are going to be. Don’t think if the property would be somewhere where you would like to stay, instead think about if the type of people your tenants are going to be would like to live there.

So if you are going to be letting out to students, then you should ensure that the property is going to be easy to clean and maintain for them. Where as if you are going to letting out to a family, then you should ensure that the property will be virtually empty so they will be able to put their own stamp on the property to make it feel as it is their own home.

Carrying on from the point of people wanting to make the property their own, you should not be afraid to let them make their own changes to the property. If the tenants are comfortable in the property then they are more likely to want to stay there over a longer period of time and therefore your buy-to-let property is less likely to be empty over a period of time and therefore lose you money on your investment.

Tip Number 6 – Make sure you are not over ambitious

The next thing you should consider is to make sure you are not too over ambitious with the properties you are looking to buy-to-let. Make sure you consider the yield of the property before going ahead with the purchase.

To work out the yield of a property you need to look at 2 different factors. These are the annual rent you will be receiving from the property used as a percentage against the purchase price of the buy-to-let property. Once you work this out make a critical judgement on whether the asking purchase price of the property is affordable for you.

The rent that you receive should be the prominent source of the return you will be receiving. Also, if you can get a rental return that is quite a bit bigger than the mortgage repayments that you will have to be paying then make sure you start saving some of that money up for an emergency fund in case the steady flow of rent you are returning slows down or stops.

Tip Number 7 – Think about going for a property further away or renovating the property first

The final part of this article that you should consider is to think about whether the area that you yourself is living in is the best place to purchase a property for letting out to tenants. If you think that a location a bit further away from where you live would be more suitable then don’t be afraid to further your range. You may think that you would want a property that was close to you so you are more easily able to keep an eye on the condition of the property but you will be employing an agent when you buy-to-let a property and they can do that for you if you live too far away.

You can also consider buying a property that needs renovation. This could be useful to you as the purchase asking price would be quite a bit lower than a fully furbished property. If you do buy a property that needs renovation, you could perform what needs to be improved and therefore increase the value of your investment.

But if you were to do this make sure that the purchase asking price is low enough for you to be able to cover the refurbishment of the property and the over-run on costs and still have enough for a bit of a profit to be made.

Video Discussion of Buying Properties to Let

See part 3 of the article [here….]

For further information on property buying and selling, then you can contact Private Property Buyer here http://www.privatepropertybuyer.net/