7 mistakes to avoid when investing in buy to let property

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How to get started with buy to let mortgages

There is a big difference between purchasing a home to live in and one as a buy to let investment using a commercial mortgage. If you are new to buy to let investing here are 7 common mistakes to avoid.

1. Don’t be Emotional

Don’t be swayed by emotions. Think logically about the rental value and expected capital growth rather than how you feel about the feel of the home.

2. Don’t be hasty

See many properties before making buying decisions. Take your time and research potential properties,

3. Don’t ignore maintenance costs

If you are purchasing buy to let property calculate how much maintenance will be each year and factor this in when making your business plan.

4. Don’t go for low rental yields

Calculate the likely rent levels the property can achieve and go for both high rental yields and capital growth properties.

5. Don’t forget to get expert advice

Talk to experienced property experts for advice before making investment decisions.

6. Don’t be tempted by ‘too cheap’ property

Cheap property could be in a low rent district or need extensive refurbishments. Often more expensive properties can be more profitable.

7. Don’t underestimate outstanding costs

There are many costs associated with renting property. As well as maintenance there will be tax to pay, and letting agent’s fees if using one.

Some buy to let landlords end up with no or little profit on their investments. Avoiding these 7 mistakes could mean your property investment business is profitable.

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