Have you ever considered investing some of your pension or savings in a buy-to-let? With the stock market being so volatile in the current climate, investors are looking for more ‘concrete’ ideas to invest their money. If you buy the right apartment in the right location in the right condition then the long term rewards can be very generous.
Chiltern Relocation are currently working with an investor who wishes to purchase 1 and 2 bedroom flats as buy-to-let investments and asked for our help. Our first step is to narrow down location choice to maximize potential number of tenants. In order to do this we looked at some research data for three potential towns taking into account the following:
- Population
- Employment rate
- Percentage price growth over last 10 years
- Commute times to London
- Regeneration of area or new employers moving to chosen location
Next up was to short list potential apartments to preview for our clients thereby saving them a lot of time and energy. We drew up a schedule of viewings with each property to include the following:
- Address
- Agent
- Number of bedrooms
- Number of bathrooms
- Age of property
- Parking
- Which floor apartment located
- Proximity to town/station
- Price history
- Potential monthly rent
Price history is very interesting as some of the apartments are on sale for considerably cheaper than when first sold. This is often the case for new apartments which (like new cars) sell for a premium. This is why we would recommend that clients do not buy a brand new apartment – however appealing it looks.
At Chiltern Relocation are in the enviable position of understanding exactly what future tenants require. Undertaking relocation work for many blue chips companies we know what HR departments require for their staff and we know what tenants are looking for when taking them out on Viewing Days. Having relocated hundreds of tenants into similar apartments and also having assisted many clients with their buy-to-let investment we know that there are EIGHT secrets to the success of a buy-to-let investment.
1. Do not buy brand new
2. Choose an apartment block which is less than 20 years old
3. Avoid office conversions – windows and light are always limited
4. Don’t opt for a ground floor flat. Light and security is always an issue
5. Some form of outside space – such as a balcony or communal garden – is sought after
6. If buying in a block make sure there is a lift if there are more than two floors
7. Ensure distance to train station is within a 15 minute walk
8. Make sure that the ground rent is no more than 0.1% of the value of the property
Once you have ticked off the above then the next job is to research the current rental income for similar flats. Estate agents often over estimate rental yield when trying to sell you a buy to let option so it is essential to research this independently.
We narrow down the available options and arrange viewings. We take video footage to show our clients. We then arrange a small handful viewings of top options with our clients and negotiate the sale.
If you are considering a buy-to-let investments and would like more information about our service and how we can make sure you make the right investment decision then please do not hesitate to get in touch.
Tel: 01494 672086. Email: enquiries@chilternrelocation.com Web: www.chilternrelocation.com
