I am speaking to more and more investors each week looking to purchase a buy to let property in Leeds which is enjoying a booming professional lettings market. There are some key things to look out for when searching for an investment property. Making the right choices will ensure you purchase a money-making property which gives you a good return on your investment over a set period of time.
Area: This is a key factor to get right as you will never be able to change the area that your property is in. It may be that the area changes due to local investment so it is good to do plenty of research into areas which are “up and coming” or ones that have already “boomed”. Our core area of North Leeds has areas which will always be very popular due to the extensive amenities on offer and prestigious post codes within them, so these are always a winner, however they will have the price tag to go with this. It is always worth exploring areas on the cusp of vibrant districts as these tend to be the next areas where redevelopment money is spent. Having a good managing agent is key to ensuring you are kept up to date on local property trends and rental values in the areas you are considering.
Price: Ultimately the price has to be right for the investment to work. Some investors will think too much with their heart when purchasing a buy to let property and will overspend because they will only choose a property that they would want to live in. It is easy to fall into this trap as you tend to only buy things in life that you like, however with an investment property you should always be asking yourself the important question “do the numbers work” rather than purchasing something that is your own personal preference. Also, if something is priced so low that it is too good to be true then this should be setting off an alarm bell – this is where I can help with my local market knowledge.
Target Market: It is important to keep remembering who your target market is. With Moores it is the professional letting sector and as such our clients properties need to work for that market. Professional tenants will expect a certain standard of fixtures & fittings and will pay more for properties that offer features such as secure parking and outside space. Offering a quality product will help you achieve maximum rent and just as importantly, quality tenants – if you get this right at the beginning then the future lettings should follow on nicely. On the flip side there is plenty of money to be made at the cheaper end of the market, however property choice is extremely important here as the margins can be tighter.
Reinvestment: I always ask our clients how long they expect to be a landlord for as this seriously alters the type of property they should be purchasing. Investment landlords are in it for the long game and as such should plan for future reinvestment further down the road to help them maintain healthy yields. All rental properties need money spending on them at some point in order to maintain the standard, keep up with the competitive market and limit void time. Allowing a rental property to tire out is only going to see the investment stall as more and more money is spent on patch repairs and marketing time as the property struggles to let. You need to spend money to make money and successful investment landlords will have this within their plan.
I’m always happy to offer advice on the local market, rental values and refurbishment ideas. Moores local knowledge has been built up over 30 years of servicing North Leeds and our landlords can trust our judgement as they make key decisions with their investment purchases. Please give me a call (0113 2399750) or email me ([email protected]) any time should you be thinking of purchasing an investment property. Our property management service will be a great business decision for you to keep the numbers going in the right direction.