Buy to Let and the Credit Crunch: Market, Mortgages,Tips
http://www.sitecontent.com/Buy-to-Let-and-the-Credit-Crunch-Market-MortgagesTips/a10388_1
Gon
By Gon
Published on 04/9/2009
How credit crunch is affecting the Buy to Let market, buy to let mortgages and tips how to survive and thrive during the crunch.
Buy to Let and the Credit Crunch: Market, Mortgages,Tips - Page 2 of 2
Your target tenant
Think who will be your tenant and imagine in his shoes? If you are student you like a place to be comfortable and clean, links to university, nothing luxurious. If you are a professional you will be looking at a modern and stylish interior but nothing too pretentious, and excellent links. If it is for a family rental, do not put any furniture in, leave as a blank canvas, normally over the years the family has a few belongings they want to take to the next property.
Look into your portfolio
Review your portfolio, see if the initial rate deals in any of the mortgaged properties ended and compare the rate you are or will be paying with the rates currently in the market. If you are better off with the lender's Standard Variable rate, does not mean you stop looking for a better deal. Try to look once a month for new rates or ask to your adviser to keep an eye on the products.
See if there is any opportunity within your portfolio to get a higher rental income. Why not transform a house with 3 bedrooms, 1 dining and 1 living room into a 4 bedroom house with living/dining room; make a loft conversion/extension to get 1 or 2 more bedrooms; renting by the room, as by the room the rental income is normally higher (but must be on right area). The possibilities are immense to add value to your portfolio and increase your rental income without spending as much money as buying another property.
Look at other areas
Most Landlords invest where they live but most of the good opportunities are normally in other areas. Do not be afraid, as if you follow the golden rule, can be very time consuming investing areas away but can be worthwhile.
Ask for a discount
When you buy an investment property, you must not forget you enjoy the same benefits of a First time buyer - No chains, so you can move quickly. If you do not ask for a discount you will not have it.
Avoid Tenancy pitfalls
Put aside at least 2 months of rent, in case when your tenant move out or when you just bought a property will help towards the mortgage payments until you find a tenant.
Worth paying for a complete tenant check report, where the provider will get you a credit file of the prospective tenants, check their ID, get the references and they are not expensive. It is not guaranteed you will be good tenants but helps a lot. Also, you should consider a rent guaranteed insurance, where can cover for rent arrears, pay towards the legal costs to evict the tenants and damage made on the property. With this type of insurance you may request a lower deposit from the tenants to match the excess of the insurance, that may help to secure a tenancy quicker.
Shop around
Shop around for letting agents, ask a discount to traders: plumbers, furniture. The more you save the higher will be the return from the investment.
G M
Think who will be your tenant and imagine in his shoes? If you are student you like a place to be comfortable and clean, links to university, nothing luxurious. If you are a professional you will be looking at a modern and stylish interior but nothing too pretentious, and excellent links. If it is for a family rental, do not put any furniture in, leave as a blank canvas, normally over the years the family has a few belongings they want to take to the next property.
Look into your portfolio
Review your portfolio, see if the initial rate deals in any of the mortgaged properties ended and compare the rate you are or will be paying with the rates currently in the market. If you are better off with the lender's Standard Variable rate, does not mean you stop looking for a better deal. Try to look once a month for new rates or ask to your adviser to keep an eye on the products.
See if there is any opportunity within your portfolio to get a higher rental income. Why not transform a house with 3 bedrooms, 1 dining and 1 living room into a 4 bedroom house with living/dining room; make a loft conversion/extension to get 1 or 2 more bedrooms; renting by the room, as by the room the rental income is normally higher (but must be on right area). The possibilities are immense to add value to your portfolio and increase your rental income without spending as much money as buying another property.
Look at other areas
Most Landlords invest where they live but most of the good opportunities are normally in other areas. Do not be afraid, as if you follow the golden rule, can be very time consuming investing areas away but can be worthwhile.
Ask for a discount
When you buy an investment property, you must not forget you enjoy the same benefits of a First time buyer - No chains, so you can move quickly. If you do not ask for a discount you will not have it.
Avoid Tenancy pitfalls
Put aside at least 2 months of rent, in case when your tenant move out or when you just bought a property will help towards the mortgage payments until you find a tenant.
Worth paying for a complete tenant check report, where the provider will get you a credit file of the prospective tenants, check their ID, get the references and they are not expensive. It is not guaranteed you will be good tenants but helps a lot. Also, you should consider a rent guaranteed insurance, where can cover for rent arrears, pay towards the legal costs to evict the tenants and damage made on the property. With this type of insurance you may request a lower deposit from the tenants to match the excess of the insurance, that may help to secure a tenancy quicker.
Shop around
Shop around for letting agents, ask a discount to traders: plumbers, furniture. The more you save the higher will be the return from the investment.
G M
Buy to Let and the Credit Crunch: Market, Mortgages,Tips - Page 2 of 2
Your target tenant
Think who will be your tenant and imagine in his shoes? If you are student you like a place to be comfortable and clean, links to university, nothing luxurious. If you are a professional you will be looking at a modern and stylish interior but nothing too pretentious, and excellent links. If it is for a family rental, do not put any furniture in, leave as a blank canvas, normally over the years the family has a few belongings they want to take to the next property.
Look into your portfolio
Review your portfolio, see if the initial rate deals in any of the mortgaged properties ended and compare the rate you are or will be paying with the rates currently in the market. If you are better off with the lender's Standard Variable rate, does not mean you stop looking for a better deal. Try to look once a month for new rates or ask to your adviser to keep an eye on the products.
See if there is any opportunity within your portfolio to get a higher rental income. Why not transform a house with 3 bedrooms, 1 dining and 1 living room into a 4 bedroom house with living/dining room; make a loft conversion/extension to get 1 or 2 more bedrooms; renting by the room, as by the room the rental income is normally higher (but must be on right area). The possibilities are immense to add value to your portfolio and increase your rental income without spending as much money as buying another property.
Look at other areas
Most Landlords invest where they live but most of the good opportunities are normally in other areas. Do not be afraid, as if you follow the golden rule, can be very time consuming investing areas away but can be worthwhile.
Ask for a discount
When you buy an investment property, you must not forget you enjoy the same benefits of a First time buyer - No chains, so you can move quickly. If you do not ask for a discount you will not have it.
Avoid Tenancy pitfalls
Put aside at least 2 months of rent, in case when your tenant move out or when you just bought a property will help towards the mortgage payments until you find a tenant.
Worth paying for a complete tenant check report, where the provider will get you a credit file of the prospective tenants, check their ID, get the references and they are not expensive. It is not guaranteed you will be good tenants but helps a lot. Also, you should consider a rent guaranteed insurance, where can cover for rent arrears, pay towards the legal costs to evict the tenants and damage made on the property. With this type of insurance you may request a lower deposit from the tenants to match the excess of the insurance, that may help to secure a tenancy quicker.
Shop around
Shop around for letting agents, ask a discount to traders: plumbers, furniture. The more you save the higher will be the return from the investment.
G M
Think who will be your tenant and imagine in his shoes? If you are student you like a place to be comfortable and clean, links to university, nothing luxurious. If you are a professional you will be looking at a modern and stylish interior but nothing too pretentious, and excellent links. If it is for a family rental, do not put any furniture in, leave as a blank canvas, normally over the years the family has a few belongings they want to take to the next property.
Look into your portfolio
Review your portfolio, see if the initial rate deals in any of the mortgaged properties ended and compare the rate you are or will be paying with the rates currently in the market. If you are better off with the lender's Standard Variable rate, does not mean you stop looking for a better deal. Try to look once a month for new rates or ask to your adviser to keep an eye on the products.
See if there is any opportunity within your portfolio to get a higher rental income. Why not transform a house with 3 bedrooms, 1 dining and 1 living room into a 4 bedroom house with living/dining room; make a loft conversion/extension to get 1 or 2 more bedrooms; renting by the room, as by the room the rental income is normally higher (but must be on right area). The possibilities are immense to add value to your portfolio and increase your rental income without spending as much money as buying another property.
Look at other areas
Most Landlords invest where they live but most of the good opportunities are normally in other areas. Do not be afraid, as if you follow the golden rule, can be very time consuming investing areas away but can be worthwhile.
Ask for a discount
When you buy an investment property, you must not forget you enjoy the same benefits of a First time buyer - No chains, so you can move quickly. If you do not ask for a discount you will not have it.
Avoid Tenancy pitfalls
Put aside at least 2 months of rent, in case when your tenant move out or when you just bought a property will help towards the mortgage payments until you find a tenant.
Worth paying for a complete tenant check report, where the provider will get you a credit file of the prospective tenants, check their ID, get the references and they are not expensive. It is not guaranteed you will be good tenants but helps a lot. Also, you should consider a rent guaranteed insurance, where can cover for rent arrears, pay towards the legal costs to evict the tenants and damage made on the property. With this type of insurance you may request a lower deposit from the tenants to match the excess of the insurance, that may help to secure a tenancy quicker.
Shop around
Shop around for letting agents, ask a discount to traders: plumbers, furniture. The more you save the higher will be the return from the investment.
G M