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The Only Buy To Let Guide You Need To Follow

The Only Buy To Let Guide You Need To Follow

You’ve probably seen many articles and guides talking about buy-to-let and buy-to-let investments. Whilst those buy to let guide publications can be helpful to a certain extent, some of these articles are written with a lot of extra fluff that completely misses the point of what a property investment really is to regular investors.

That is why Sterling Woodrow are here. Throughout my years of experience in the property sector, I have gathered my own philosophy on being a buy-to-let investor. Looking back to when I was just a beginner with a dream of building a property portfolio, I wish I had someone to give me candid advice. As I got experience, I began to find myself surrounded with people who would sugar-coat everything. I started to wonder if it was all worth it. I would ask myself, “Why haven’t I met my goals yet?” or “Why am I not making a profit?”

My buy to let guide is no nonsense – the only guide you need to follow. If you are starting out and overwhelmed just like I was, or you want a bit more direction because your property journey isn’t quite going to plan then my guide is for you.

What is Buy To Let Investment in a Nutshell?

Buy-to-let is the UK term used for a property that is bought and let out (rented out) to tenants rather than being used as a home by the buyer. The buy-to-let sector is the most common type of UK property investment and possibly the most challenging.

The trouble is, a lot of people like me who started with a dream underestimate the amount of work that goes into being a traditional landlord. There are always new emerging laws and regulations that make the game harder, but nevertheless you have to keep up with them and know it inside and out before you can make a decent profit. There are also procedures such as marketing the property to find tenants, dealing with tenant’s late rent, handling repairs and pushing through profit-eating void periods that first-time investors don’t take into account.

First Time Buy To Let Investments Should Be Fully-Managed By Professionals

One thing that I have discovered that has helped me to overcome common obstacles is fully-managed buy-to-lets. This type of investment is one that doesn’t require landlord experience, so it is ideal for beginners in property investment.

I started off investing in buy-to-lets with a full-time job. What I didn’t realise was the amount of time it takes to manage your investment and as your portfolio grows, the time you need to sacrifice increases. I wasn’t ready to juggle a full-time job, family time and my social life just to be a landlord. In the end I did my own research and found the best alternative.

Fully-managed buy-to-let investment doesn’t require any work from the investor. The whole idea is that you are still investing your money, but instead of doing it all yourself or hiring expensive agents to do it for you, it conveniently comes in an all-in-one package. Everything from repairs and maintenance to tenants and void periods are covered by a professional management company.

Don’t Let the Buy To Let Costs Scare You

If you thought doing it all yourself would save you money, take it from me – you will lose more than you gain if you don’t know what you are doing. I learned that the hard way. I started my portfolio by taking out a second mortgage to leverage my first buy-to-let. After years of managing it myself I found it difficult to keep up with the costly expenses of a buy-to-let, many of which you can find here. https://personal.natwest.com/personal/life-moments/buy-to-let/other-costs-of-buy-to-let.html

Although you will still have to pay for the property, all the tax, ground rent and solicitors fees, choosing the fully-managed alternative saved me a lot of buy to let costs in the long run. You don’t need to pay the management company out of your pocket, the developer of the property will take a small percentage from your gross profits and pay the management company whilst still leaving you with your agreed NET return each month, despite any repairs or void periods that occurred.

For someone like me who still wants to have a life whilst earning a passive income, the whole model is convenient and secure. Everything is agreed contractually by the developer and management company, so I know exactly how much I am going to get in my bank every month. I don’t need to worry about raising rents just to make enough to cover my monthly expenses.

Location, Location, Location – Buy To Let Hotspots in the UK

If you know about property, one motto that every investor or even home-buyer lives by is “location, location, location”. I will say though, that the beauty of a fully-managed buy-to-let investment is that it can be anywhere in the country, because everything is done for you which saves a lot of travelling. However, that doesn’t mean that you shouldn’t think about the location.

My favourite thing about the fully-managed model of investment is that I can take advantage of buy to let hotspots where purchase prices are low, and yields are high. Where I live in the UK’s capital, the properties are very expensive and a small investor like me will not make any profits. Where the money really is in the current market is up North. https://www.simplybusiness.co.uk/knowledge/articles/2016/06/is-the-north-west-the-best-place-for-buy-to-let-investment-in-uk/

The billions of pounds spent on The Northern Powerhouse regeneration project in cities like Liverpool, Manchester, Leeds, Sheffield, Hull, and Newcastle has made the North of England a target for business-savvy, money-hungry investors around the world. As a result, I would suggest doing your own due diligence and looking for the areas with the best returns rather than choosing an area that is close to you or popular (as there will be more competition).

Conclusion

What I think you should take away from this article is that there is no ‘one size fits all’ method when it comes to property investing. I have asked many investors for their tips and advice Some worked like a charm, and others not so well. I have managed to find a strategy that works for me and my goals, which is what I am going to share on this blog. To summarise, fully-managed buy-to-let investments offer the investor a flexible lifestyle unlike the traditional landlord method of investment. They are also more secure because a rental yield is agreed upon during the exchange of contracts, which eliminates a lot of worries that a first-time investor may have.

 

The Lessons A Buy To Let In London Will Teach You

The Lessons A Buy To Let In London Will Teach You

Buy-to-let London investments have become increasingly powerful in the last two or three decades. While many individual and commercial investors buy residential homes, others focus on multi-family properties and student housing. While landlords can profit in multiple ways from their properties, there is also a big learning curve.

The Lessons London Buy-To-Lets Teach You

It’s important to learn the lessons Buy-To-Let London teach you in order to plan well for a profitable future. One of the biggest mistakes that new investors make is to assume that they will quickly make a profit off of one or two properties. Seasoned investors have realistic expectations and goals for ways that they can earn an income from their investment in buy-to-let property.

For example, rental payments first have to cover mortgage payments, tax, insurance, upkeep, and other costs. After all of the fixed or unexpected bills get paid, there might not be a lot left over for profit. Experienced buy-to-let investors also look for properties that will appreciate over time. This can be the key to earning the maximum amount of income from any property investments.

They might expect to make their biggest profits after they have rented the property for a few years just to collect income to cover costs. Later, they hope to sell the appreciated property for a nice profit.

buy to let london

What Buy-To-Let Owners Need To Know

Before buying any property, it’s important to evaluate its condition. Certainly, some properties may be sold very cheap, so investors can still do well even if they have to invest in improving the property. Getting a building or home inspection is a critical step in making a sound investment decision. Buyers need to know what they will need to fix before they buy. Otherwise, repairs can quickly devour profits and even create a loss for a time.

It’s also wise to check the chances for future capital appreciation. You can learn how to figure out which neighbourhoods are likely to increase in value and which are not. This way, you can always sell the property at a profit when you have demonstrated that you can collect rental income from it.

You Don’t Have To Learn The Buy-To-Let Business The Hard Way

Instead of making a lot of frustrating mistakes, you can rely upon good training in London from experienced professionals. After you learn how to buy, run, and profit from your property, you will have a good chance to enjoy running a successful business.

3 Outrageous First Time Buy To Let Fears You Need To Get Over

3 Outrageous First Time Buy To Let Fears You Need To Get Over

buy to let fears

Buy-to-let, especially in the UK, is not easy to get into for the faint of heart; there are so many horror stories from people who have tried and failed that it can seem like a sure way to lose money. In fact many people prefer to buy and flip properties rather than let them because they would rather own them for the shortest time possible. But are the fears justified? Any venture comes with risks. It is true that buy-to-let can be a tough investment but you shouldn’t let that get in your way. If you take reasonable precautions you should be able to make good investments that are profitable. If you are reasonable smart here are three things you needn’t worry about.

Tenants are from hell

This is a myth that has been perpetuated by landlords who don’t take time to vet new tenants. Here is what you ought to know – most people are good and they would never destroy a property especially if they know that they will be held accountable for damages. You need to vet every tenant that you put into your buy to let and not just for their ability to pay. Criminals, for example, are eager to pay their bills so as not to attract attention so as not to arouse suspicion but they can do horrible things to properties. You ought to do a full background check to find out exactly who you are dealing with. Have a contract that is very clear about damages to your property.

You will not make any money until your mortgage is paid off

It is true that when you buy a property to let the bulk of the rent payments will be used for mortgage payments but this is where you need to get smart. You should set your rent in such a way that after the mortgage is paid you can still have a bit of money for yourself. The only way to do that is to make sure that your home or apartment is renovated to the highest standards – tenants are willing to pay more for perceived value. You can add a few fixtures and fittings here and there that make your property the preferred rental and you will find that tenants are happy to pay more.

Downtime is something that you have to learn to live with

When you have a rental property tenants will move out from time to time and you have to find new ones if you want to keep on making money. You will read and hear stories about properties that stay vacant for months while owners try to find tenants but this will only happen to you if you insist on filling the vacancy yourself. If you don’t want to have any downtime why not make it someone else’s job to find you tenants? You will pay them a fraction of the first month’s salary but your property will be occupied most of the time.

The Story Behind The Popularity Of A Buy To Let Manchester

The Story Behind The Popularity Of A Buy To Let Manchester

There are lots of major trends happening in the world of real estate at present. The buy to let Manchester model has been famous for a long time now. Many people enjoy this option because it gives them the chance to invest in real estate in a way that will almost always seem more productive. They’re not just getting a home for themselves. They’re finding a way to make money off of the property that they’ve purchase. By renting it out automatically and by purchasing that property for that purpose, the owners are ensuring that they will definitely start making money on that property right away.

Lots of people have been specifically purchasing Manchester real estate with the buy to let model in mind. Historically, people who were interested in investing in real estate by using the buy to let model would tend to purchase properties in London. Obviously, London properties will almost always increase in value. People who purchase London properties will almost always enjoy returns on their investments. However, there is more competition for London properties today, which has caused a lot of real estate investors to pursue other options in the last few years.

It’s also important to note that a lot of people are aware of the changes connected to London real estate regulations. Many people aren’t happy about the stamp duty situation, and many other regulatory changes are making things tougher for the people who are trying to invest in London real estate. Manchester is around four hours away from London, so the real estate investors who are trying to become successful through Manchester real estate instead are clearly not focusing on London in an indirect manner. However, it’s looking like the Manchester market might be one of the best for the people who are trying to find a way to become successful using the buy to let model of real estate investment.

New properties are being constructed in Manchester all the time at present. This is very much an area that is expanding when it comes to real estate. A lot of people are trying to move the Manchester now in order to take advantage of all of these economic changes. Some people are also interested in avoiding high London real estate prices. The people who invest in Manchester properties at present will find it easier to get the returns that they want. They might immediately start to make profitable investments, which is not easy to do in any real estate market. There will be lots of new potential tenants now.

Obviously, people should know that the buy to let boom in Manchester is not going to last. It’s popular right now, and there are specific conditions that are making it popular. Eventually, the prices are going to rise too much and there will be too much competition. Some of the regulations will also change. However, at the moment, the buy to let plan will work particularly well in Manchester.

Industry Experts Shed Some Light on What Makes Good Buy To Let Deals

Industry Experts Shed Some Light on What Makes Good Buy To Let Deals

buy to let deals

Investing in the property is the most flourishing trend in the market. The Buy-to-Let Property marketplace can be a terrifying place to venture in for the average wage earning individual. It is believed that such a property can only lead to a multitude of problems, such as loosing money, difficulty in selling the property in tough times, problems with rental collection, damage to your property, etc.; it is something that ends up bringing more harm than good to your financial well-being over the long run.

Ironically, this is exactly the method that some of the world’s richest people used to make a fortune, with just one proviso; they knew what they were doing!

What are the secrets of these property gurus?

The secret is that it is not a secret! Anyone with some know-how and confidence can do it. And here in these articles, backed by 25 years of experience in property investment we will provide you, in detail with that knowledge.  However, the dangers and problems inherent in such an undertaking are many, but we will teach you and come to grips with each and every reservation you may have in your venture to accumulate a passive income for you and your loved ones. This is not just a fly-by-night venture; every step you take to improve your financial position by investing in buy-to-let property will be a step in the right direction. Thousands of people, if not millions are investing in these properties and are living comfortably off the income generated from them. And you can do it too!

In reality, some of the people who are attracted to the buy-to-let scenario are those who do not know that they can earn a second income with relative ease. The rental income on these properties will help to pay off the mortgage on that property and once this mortgage is paid, (we will show you how to do this faster), you are in an excellent position to acquire your second property, and third, and fourth; and so on, depending on your future needs.

We know that it is sometimes not easy and perhaps frightening to start on such an exercise, but as Nike so aptly put it, “Just Do It”! The first step is always the scariest, but once you are on the bandwagon, so to speak it gets easier the further you go and the more knowledge you accumulate. And remember, there will always be these articles and the feedback on our Blog from people with perhaps the same questions that you may have.

It is OK to have believed that it is almost impossible for the ordinary salaried person to invest in more than one property for his personal buy-to-let requirements, but once you embark on this adventure, you will never regret it!

Thus, hire a company with the best Buy to Let deals business and the Best Buy to Let Mortgage properties at affordable rates in the market to grow and flourish the real estate business or simply earn income from your investment.

How Will Buy To Let Investment Be In The Future?

How Will Buy To Let Investment Be In The Future?

buy to let investment

Predictions For Buy-To-Let Investment In The Future

In the UK, “buy-to-let” simply refers to the practice of investing in properties with the intention of renting them out and not using them personally. Most people use this term for residential properties, however, it can also include residential or non-residential commercial buildings. Learn more about some good predictions for buy-to-let investment in the future.

Buy-To-Let Investment In The Future

To make good predictions, it’s important to understand more about the historical growth of buy-to-let. This practice of purchasing property to lease out is now so common that many mortgage companies even design mortgage loans tailored specifically for this use. However, this was not always true. In fact, 30 years ago, having individuals buy investment properties for leasing out was extremely rare. Then, large companies, real estate professionals, or very wealthy people typically purchased properties that they intended to let out to renters.

Basically, these wealth or institutional investors did not take out typical mortgages to buy property. Instead, they had the funds to pay cash or relied upon commercial lenders. During the 1990s, this all changed a lot. According to a report from the UK Council of Mortgage Lenders, mortgage lenders loaned over one and one-half million investors the money to buy properties that they intended to offer for leases since the beginning of the 21st Century.

The Benefits Of Buy-To-Let

Investors get a couple of good benefits when they purchase investment property. For one thing, they can collect rental payments to help supplement their income. In the long run, they may also benefit if the property appreciates in value. in fact, many investors just want their rental payments to help pay off the loan and handle other costs of owning property. In the end, they intend to truly profit by selling the home or other kind of property for more than they bought it for.

Typically, a buy-to-let investment is made as a long-term investment; however, some investors get lucky and see the value of their properties increase very rapidly. Other buy-to-let investors may plan to make quick improvements to the property that can also help speed up increased property value.

Will Investors Continue To Profit From Buy-To-Let In The Future?

Not all investors make a profit or break even right away, so landlords need to plan carefully and understand the risks. Those investors who treat their investment like a business and have a plan to make profits can do very well, so this trend is likely to continue.