If you hate the prospect of holding down a 9-5 job, there is one way to earn a living: you could set up a property portfolio! In layman’s terms, that means buying houses and flats, for example, and making a profit out of them.
The most common route is by getting “buy-to-let” properties. The way they work is simple. You buy a house or an apartment, and then you rent it out to other people. The rental income pays your mortgage on the property. Anything left over after other expenses is your profit!
That sounds like a brilliant idea, in theory, but does it work in reality? In short, the answer is yes. Many folks cannot afford to get on the property ladder these days. They must rent until they save enough money for a deposit on a future home. You can make money from that situation and provide them a nice place to live in the meantime. It’s a win-win situation!
When considering a buy-to-let property, you are no doubt wondering where to buy. Believe it or not, London is still the prime choice for many career-minded individuals. Keep reading to learn how you can get started the smart way:
Choose a location
London is a big city with almost nine million people living within it. Despite that fact, there are plenty of properties for sale that you could get on a buy-to-let basis. The only trouble is; which part of London should you consider?
Well, unless you’ve got a big bank balance, forget about the most exclusive areas of the city. Instead, focus your attention on the up and coming areas. They are places where the government is investing in regenerating the area. Examples of past locations like that include Hackney and Shoreditch.
Buying in such locations is good for several reasons. First, cheaper properties are on offer. Second, property values will climb as time goes on, and third, you will make a good ROI!
Find a good real estate agent
Next, you’ll need to look for potential places to buy. You can, of course, search online. http://ballantynes.uk.com is a good place to start in your Internet journey. Don’t forget to contact local estate agents too for more breadth and choice.
You need to select an estate agent that has your best interests at heart. The last thing you want is to end up with a property that is only fit for demolition!
Bring the property to a habitable standard
Once you’ve found and bought your first property, you need to renovate it. Be sure to bring it up to a good standard so that tenants can move into it straight away.
Avoid using expensive materials in your renovation project. Instead, stick with basic but high-quality items. Paint the walls a neutral colour like white or magnolia to save on decorating costs. You might not think it, but it’s possible to do all that work on a tight budget!
Start renting it out
Now you’re ready to put the property on the rental market. Make sure you select a realistic price. Be sure to have your estate agent do thorough background checks on new tenants.