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10 Myths About Buying A-House-To-Let That Need To Be Debunked

Property investing and consistently making rental income sounds appealing. Yet there are misconceptions on both sides in terms of the pros and cons of this business opportunity. If you are looking to get started as an investor, then you might want to know these 10 myths about buying-a-house-to-let.

Starting a rental business may sound easy if you’re able to buy the property. Yet that is myth #1. It’s not easy, as you’re running a business. Yet myth #2 is that this type of business doesn’t necessarily have to be a full-time job. Worst case scenario, you can always hire a property manager, too. So while running the business isn’t a piece of cake, you don’t necessarily have to worry about giving up your job.

That means you can still earn income on the side as you grow your business. Another one of the 10 myths about buying-a-house-to-let is that it represents an investment for which you can’t really calculate your total return. First, there are going to be some uncertainties going into the investment, as there is with any other type of investment you make. Yet that doesn’t mean your return can’t be calculated.

You can calculate what you expect your return to be, just like with any investment. And you can naturally calculate your ROI after everything is in the books. Then you can work on ways to help you get a better rate of return. One thing about property investing, too, is that it is considered to be a more stable form of investing, when done correctly. You will sometimes hear otherwise, but that’s another myth.

When you look at individual real estate markets, you might see some people saying that supply and demand doesn’t always apply. Yet in general, it’s always going to apply. If there is a lot of demand for particular types of properties in a given area, rent is going to be higher. Keep that in mind as you look around for the rental properties are figure out an expected rate of return on your investments.

Another myth is that real estate investing is a get rich quick scheme. There are people who have flipped houses quickly to the tune of enormous profits. Yet most people are going to build a stable buy to let business that generates income. Don’t fall for the myths out there as you become a real estate investor and start leasing those properties.

Here Are 5 Secrets About Buy-To-Let Investment You Need To Know

Buying to let represents significant opportunity, but you have to make the best investment decisions. Before you become a savvy investor, you have to make it out of the gate unscathed. You want to build up that investment portfolio, but it’s going to take time. Property investing requires patience, and that is something you will have to think about. Here are 5 secrets about buy-to-let investments that you need to know.

Are you familiar with the one percent rule? This rule is one that you need to try and stick to as a standard. Yet you need to know more about it before you’re able to do that. Sticking to the rule will help you better make investment decisions and manage your business finances. So what is this rule?

It is all about the rental income per month for your property vs the amount of your investment. For example, let’s say that you invest $200k in a home. According to the one percent rule, you are going to want to see an income of $2k per month on that property. As you learn more about property investing, you will see why that rule should be in effect.

When you are looking for good buys, you also don’t want to forget about property taxes. Property taxes are a consistent responsibility when you are buying to let, so you need to be prepared to handle them for sure. One thing you don’t want to do is get a surprise that you’re not expecting when it comes to your expense in relation to property taxes.

Here is another one of the 5 secrets about buy-to-let investments that you might want to consider. You’re just getting started, and you want a good property at a discount. That doesn’t mean you want to purchase one that needs to be fixed up. If you do that, you could get yourself into quite a pickle. There is nothing wrong with a fixer upper, but they are usually for more seasoned investors. These people are used to doing the extra figuring, and they also have all the contacts for cheap repairs.

You could really find yourself in a difficult situation if you bite off more than you can chew. Keep that in mind as you look at property investments and decide whether or not to buy fixer uppers. You also want to be sure that you look at more than just the properties themselves. The area in which they are in is also important. You need to know information about the neighbourhoods, and that includes how much properties in the area are selling for.

One more secret to keep in mind is that there are always unexpected expenses. That means you definitely need cash reserves so that you are able to handle those types of expenses. It’s a good idea to network with other investors, too, so that you can learn all the tricks of the trade so to speak. If you are ready to jump into the world of buy-to-let investing, opportunity awaits.

Why Is Buy-To-Let Investment Trendy In 2018?

Financial markets are up and down almost as quick as you can analyze the data, and this type of economic climate causes investors to reevaluate their options. One stable investment that has been popular for a long time and is currently trending is real estate. Buying to let property investing represents quite an opportunity in 2018. Do you want to know more?

Why is buy-to-let investment trendy in 2018? It’s all about the stability in terms of rental income. Income driven investment portfolios are especially helpful for people who are nearing retirement. Yet they are good investment opportunities for people of all ages, especially when diversifying during uncertain economic instability. The markets are anything but stable.

You are still going to have to make sure that real estate investing is right for you. Furthermore, it could be something you want to do, but is it the right time? You are certainly going to need to be ready to take on a buy to let business opportunity. If you have the capital and a good business plan, then you might just be ready to get started.

You want to approach buy to let investing with as little debt as possible. In fact, it would be great if you were otherwise debt free. You can finance the properties when necessary, but you have to watch there, too. Moreover, you need to be sure that you are saving up substantial down payments, too. Making down payments will help ensure that you are not taking on too much new debt as you grow your business.

Savvy investors sometimes buy homes that are fixer uppers. They also consider flipping homes at certain times, even if they are operating a buy to let business. There are commercial properties that can be leased out, too, so you’re not just relegated to residential property investing. Yet you’re not going to do everything a savvy investor would do right away.

You have to become a savvy property investor yourself. You will get there, but you want to start out small. Buy that first property, and then you can begin to build. You’re going to want to get started after looking more closely at the opportunity.

Why is buy-to-let investment trendy in 2018? You’re talking about consistent rental income and physical assets. It’s about as good as it gets when talking about investing. If you think that you are ready to make the move, start developing a business plan.

Should You Buy-To-Let Without Landlord Experince

Buy-to-let without landlord experience, and you might be thinking you’re getting yourself into a world of problems. Yet you don’t even have to be the landlord. You are going to be the owner, but you can get a property manager to do most of the work as the landlord. You will still have to take care of insurance, taxes, repair decisions and run your business, but you get the idea. You won’t have to be the one collecting rent and overseeing the property and tenants.

In fact, you can put a property manager in charge of making sure the place isn’t vacant. Vacant properties aren’t making you money. After you accumulate several properties, you might not want to oversee them all anyway. You might find yourself wanting to hire a property manager at that point, so maybe you would consider hiring one now.

When you buy-to-let without landlord experience, however, you don’t necessarily have to hire a property management team. You can if it fits your needs, but you can also study up on how to be an excellent landlord. Hey, it might actually be a whole lot of fun. You already have the interest in buying investment properties and leasing them out. If you have the time, then you can be the property manager, too, or the landlord.

This can especially be good when investors are first starting out and only have a few properties. You might find that you have the time to be the landlord, and you don’t want to have to pay a property manager to do the work. After all, an expense like that can mean less profits. Yet as you accumulate more properties, you might find that having a property manager isn’t just necessary but can actually save you money.

You want those properties in good shape. And if you have too many properties for you to handle yourself, you’re going to need help. Not knowing how to be a landlord isn’t reason for you to think that you have to absolutely hire a property manager though. You can do it! You just have to know the laws and get your business affairs in order before you start leasing out properties.

You will be a good landlord if you are passionate enough about your business and ready to run it daily. You will have to know the laws for sure, and you will need to have lease agreements drawn up. There are plenty of people who make mistakes when it comes to the professionalism of their rental business in regards to leases.

Don’t be in that group of people. Take on your business correctly, and you will soon have the experience you need. But remember as you continue to accumulate investment properties, you might just want to go ahead and hire a property manager. You will know when it’s time to do that. Until then, prepare for the adventure of being the landlord, and it’s something you will likely enjoy. Put those customer service skills to work.

Invest In Buy-To-Let Areas In The UK Like Liverpool, Newcastle, London, Leeds And Glasgow

Some of the most profitable buy to let investment opportunities in the UK include investments in student accommodation and investments in care home accommodation. You can buy single or multiple units in a student residential block and prices start from just £60,000 to invest in buy-to-let areas UK like Liverpool. Yearly returns on student accommodation typically exceed 8% net and you don’t have to worry about any maintenance costs. 8% net returns per annum are much higher than you could currently expect to receive if you put your capital in a savings account.

Next, the UK has a large aging population and many of those entering residential care in the coming years are asset rich. This means that they have money to spend on their care. In addition, the UK government provides funding for residential placements for all citizens that require elderly care who don’t have any savings or pensions. Furthermore, there are long waiting lists for places in many residential care homes. This all means anyone who invests in the UK care home real estate market will not have to worry about high vacancy rates or defaulting rent payments.

It is possible to buy a single managed unit in a residential care home and enjoy hands-free returns. You don’t have to worry about finding tenants yourself or dealing with maintenance issues. This is all managed for you by the company you buy your unit through. Returns can exceed 12% per annum and many unit sellers operate generous 5-year buyback schemes. With these buyback schemes, you can often sell your unit for 10% more than the initial purchase price after 5 years. However, it’s important to check the terms and conditions of all unit sales carefully.

One of the great things about investments in buy-to-let student accommodation and elderly residential care units is that the investments are available to the global marketplace. This means if you are based overseas and looking to invest in UK real estate, these types of investments could be the ideal starting point. You can always scale up your investment and increase your potential returns by purchasing multiple units. Keep in mind that it’s always good to diversify your investments, so you might want to invest in buy-to-let areas UK in a diversified way. For example, you might want some units in different cities, such as London, Leeds, Glasgow, Bath, Manchester and Newcastle. That way, you are shielded against any short-term local property market crashes.