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.