How to choose a buy-to-let property

THERE ARE MANY different types of property in the UK, each with its own unique characteristics. So, when it comes to deciding which is the best type of property to invest in right now, it’s important to consider all the options carefully. The first thing to think about is what your investment goals are. Are you looking for a short-term investment that could give you a quick return, or are you planning for a longer-term investment that will appreciate in value over time?

OPTIONS TO CONSIDER
If you’re looking for a quick return on your investment, then properties in high-demand areas such as London and the South East of England are an option to consider. Prices in these areas have been rising steadily for some time, and show no sign of slowing down. However, if you’re looking for a longer-term investment that could offer greater stability, then you may want to consider buying property in less popular areas. These can be an option if you’re looking to buy at a lower price and rent out the property to cover your mortgage payments.

COMPETITIVE RENTAL YIELDS
The answer will vary depending on your individual circumstances, but there are some general trends that can be observed. Generally speaking, apartments offer more competitive rental yields than houses – especially if they’re in popular locations. They have also generally outperformed other property types over the past few years. This is largely due to the fact that they offer a more affordable entry point into the housing market, making them attractive to first-time buyers and buy-to-let investors alike.

CAPITAL GROWTH POTENTIAL
However, this doesn’t mean that flats are always the best option – it really depends on your specific needs and goals. If you’re looking for capital growth potential, then a house may be a better choice. The number of bedrooms will affect who wants to live there. Bigger properties with several bedrooms will see interest from more families, while studios, one-beds and two-beds are likely to be filled with young professionals – particularly in city centres.

NO ONE-SIZE-FITS-ALL ANSWER
While there may be more demand in many areas for flats for youngsters, there are benefits to renting out houses to families, too. Often, families will stay for longer, meaning a more reliable income and fewer void periods, for example. With each option it’s important to do your research before making any decisions.

Ultimately, there is no one-size-fits-all answer to this question. The best property type to invest in right now will vary depending on your individual circumstances and goals. However, by doing your research and obtaining professional advice, you should be able to find the option that’s right for you.

Don’t forget, our professional, friendly advisers are on hand to support you and can help you explore all of your options.