Investing in buy to let properties can be right for you if you are happy to tie your money up for a relatively long time and prefer solid investments over things like stocks and shares. You also have to understand that there are risks and you may not earn the profits you expect and that you also need to invest some time in managing your buy to let property.According to the Money Advice Service there are two possible ways of making a profit with buy to let investments: rental yield and capital growth. Using property inventory software can help with management of your property and simplify the process.
Best areas to buy
LendInvest’s latest statistics indicate that the best place in England and Wales is Colchester where the rental price growth is 6.5%. This is due, in part, to the fact that fewer young people are buying properties. Stockport is in second place and has a rental price growth of 3.18%, although capital growth and rental yield are both higher than those in Colchester. In third place is Manchester, followed by Birmingham, Canterbury and Coventry.
There are differences between areas that offer the best capital gains for people looking for long term profits and those where rental prices have shown the most marked increase.
In general, Central England and the Midlands are good areas for buy to let investments. Birmingham, which is back in the list of top ten places for the third time, benefits from recent significant regeneration and has a large professional service sector, which means there are plenty of potential tenants for rental properties. The HS2 rail link is also expected to help with faster train times to the capital.
In Scotland, Edinburgh, Glasgow and Aberdeen are all good areas for buy to lets.
Managing buy to lets
Managing buy to let can be quite complicated and time consuming particularly if you have a number of properties. This is where you should consider What are the main benefits of using property inventory software inspection app This can help with routine tasks such as producing the detailed inventories you need, arranging regular inspections and managing tenants moving in and out of your property.
Wherever you decide to invest in a buy to let it is an important commitment, but can be very worthwhile.