by Ben on February 28, 2011
7 Questions for a Buy To Let Investor
Over the past ten years or so, lots of people made a great return on
buy-to-let properties. Those profits have been less attractive in recent years as the property market has spluttered and BTL finance has been harder to get: even solid
landlords with a strong track record have found it hard to get their hands on mortgages.
2011 looks like the year that Buy to Let bounces back. Falling house prices in most parts of the country mean there are more opportunities to invest in property to rent out. Are you ready to take the plunge?
But it’s not something to undertake lightly. An investment of such a size (and yes, it is an investment) requires careful and thoughtful planning. You should be asking all these questions and more:
What are my motives?
Obviously, you want to make money. But how? Perhaps you envisage making a long-term investment to provide a return when you sell the property ten years down the line. Or maybe you want to generate a regular income from your tenants. Your motives will determine the sort of property you buy and how much you spend.
Who are my tenants going to be?
Your own preferences will determine what sort of tenants you have in mind. Different tenants have different needs and you need to make sure that you can meet them. A family of four will want different things to the professional couple, the businessman in town for a few months or the students going to the local college. Think about who your tenants will be and allow that to guide other choices. For instance, if you’re letting to a family, a garden will probably be a good thing, as will schools. But a professional couple will want other things.
What properties are available?
The housing market isn’t in rude good health but plenty of properties are available. You need to decide whether you can find a property that fulfils your needs and is suitable for your tenants. Take time to view plenty of properties and get under the skin of local market. Talk to estate agents, lettings experts and local people to understand what’s going on in the neighbourhood. Use the internet to research as well. You can easily research properties for sale and recent buying prices online.
Is the location suitable?
Take time to assess the neighbourhood on your future tenants’ behalf too. Does the location have all the local amenities that your tenants will need? Think of everything from the post office, to the local shop, schools and public transport links. Research has shown that the location of a property can often be as important as the property itself for tenants. Also, remove your own prejudices from the equation. It might be a charming suburb but the quiet you value you might not be important to your future student tenants, for instance.
What’s going to change in the area?
This is an investment so don’t leave anything up to chance and the potential risks to your money might not be immediately visible. Get down to the town hall and check out whether there are any significant developments in the pipeline. A proposed supermarket might be about to destroy a rural idyll or a block of flats going up next door might be a real blow to peace and quiet of the neighbourhood. Find out if there are local residents’ groups and ask them whether there are any changes planned. You’ll kick yourself if you don’t.
What can I really afford?
You probably have a general idea of how much money you can afford to invest in your Buy to let property and you’ll likely know how much you’ll be able to borrow. But seek out professional advice and be realistic about how much you can afford. Don’t just plan for the good times. There is still great uncertainty in the economy and there are still rocky days ahead. Don’t forget to take into account rising interest rates. Base rates are at an all time low now, and have been for month, but expect them to rise. Can you still afford your investment if interest rates rise dramatically?
How many months of voids or arrears can I afford?
And whilst planning for the bad times, don’t forget to plan for the inevitable when there’s no rent coming in. There are two reasons why this might happens. Firstly, your tenants might not pay up and get themselves into rent arrears. The other is a rent void. If your property is empty for even a few months, that will be a real dent in your annual income. Make sure that you have some plan for contingency when the rent isn’t coming in.
by Ben on September 23, 2010
We’re not popping the Ch
ampagne corks quite yet, but Loft’s delighted to have reached the finalist stage of the Landlord & Letting Awards 2010.
Whilst we were busy doing what we do best….supplying the perfect buy-to-let furnishings solutions across the 
North West, one of our lovely clients nominated us for this prestigious award – as best supplier of the year.
The finals will be held at a gala dinner on 17th November – keep your fingers crossed for us.
At Loft Interiors we’re counting down to the launch of our Summer 2010 brochure. What’s all the fuss about a brochure you might ask? Well, our rather special 72 page bonanza of a brochure will unveil Loft’s brand spanking new divisions:
Loft Interiors
Loft Design
Loft Packages
Loft Contract
Loft has come such a long way since the days when we simply provided buy-to-let furnishings (although, of course we still do a great job of that!) that we’ve decided to split our offering into clearly defined areas, so you find it easy to find the business boosting products and services you need.
Give us a call on 0161 872 2363 or email info@buytolet-furnishings.co.uk to be among the first to get your hands on a new brochure.
In the meantime, here’s just a little taster of a couple of our new products and services:
Pick YOUR Pack….a revolutionary twist on our well loved furniture packages, this great product still removes the hassle from sourcing all the furnishings you need for your buy to let property, but it leaves YOU in control with more flexibility and design options than ever. All will be revealed in your new brochure.
Cash and Carry – this isn’t just any cash and carry service, it’s a couture cash and carry service. The same great quality, stylish products you’re used to, at unbeatable prices. The difference is in the delivery – you simply visit our head office on Ayres Road in Manchester and pick up your choice of product. Simple but effective!
There are plenty more where these little gems came from, but you’ll have to order your copy of our brochure to find out more.
Our guest blogger –Tony Wallwork, managing director of Key Estates, which developed the visionary, eco-sensitive, Linden apartments on The Beeches in West Didsbury – explains why dressing your development leads to faster sales and rentals:
‘’In a tough market, we decided to do things differently to make The Linden stand out from the glut of apartments available in the area. Calling on Loft’s home staging expertise is just one initiative that has made all the difference.
‘’Preserving The Linden’s classic 19th century frontage, but marking the development with a 21st century stamp by totally rebuilding the rear of the building, has created stunning aesthetics and eleven apartments all featuring magnificent living spaces.
‘’The development features four distinct products, including a penthouse apartment and three varieties of two bedroom apartments – including a duplex option – each designed to suit a different demographic: from professionals to young families.
‘’Initially we put the apartments on the market unfurnished, but it quickly became apparent that viewers were finding it hard to envisage how they’d live in the spaces. So, we decided to call in the experts to furnish and dress examples of each type of apartment to realise their potential.
‘’Loft was recommended to us by Philip James which has been working with the team for years. I took a leap of faith and gave Loft a free rein, simply briefing the team to deliver a sensational look to a certain budget. The results have been fantastic.
‘’We noticed an immediate difference in viewers’ reactions. They can now see in the apartments the lifestyle they aspire to, thanks to a really glossy look, courtesy of Loft. Out of the 11 apartments, only three are remaining, and some buyers decided to snap up the Loft furnishings too.
‘’Loft’s approach to the environment – with its diligent disposal of packaging – was also a real draw for us, as The Linden is an environmentally sensitive development, built to Eco Standard (very high). We’ve planted £40,000 of new trees, included £220 of public transport vouchers for buyers in the sale price, and have even installed a lawned roof top which encourages bees to pollinate the surrounding areas.
‘’Unlike many other apartments, we built The Linden 100% DDA compliant – which, for full disabled access, means wider doorways, corridors and lifts – all pleasant features for any homeowner.
‘It’s this attention to detail that makes The Linden a stand-out development and has ensured its success even in a tougher market. Key Estates will definitely be working with Loft when it comes to furnishing our next project: 17 three storey townhouses in Stalybridge.’’
The trend for glossy finishes has moved out of the kitchen…and into the bedroom! At Loft we’ve seen a surge in demand for sleek and shiny bedroom furniture packages, which have become the rental property furnishing of choice amongst those in the know.
Take a look at these gorgeous examples of black lacquer and walnut finish wardrobes, dressers and bedside cabinets – we think they’re lush. The Loft team are all clamouring to give our own bedrooms a five star upgrade – never mind just buy to let properties.
With lives becoming ever busier and shared living spaces leaving little ‘you’ time, turning a rental property bedroom into a real sanctuary is the best way to woo your prospective tenants.
Check out more of Loft’s dreamy bedroom furniture at Loft Interiors.
by admin on April 13, 2010
With three quarters already booked out with well-known furniture names like Morris, Buoyant, BM, Kettle, Furnico and Davinci, the Manchester Furniture Show has announced another big furniture brand who will be exhibiting; Corndell.
The Manchester Furniture Show
The Manchester Furniture Show showcases furniturebetween the 18th and the 21st of July, and will also be attended by first-time exhibitors Signature Living, Aero Beds and Persian Art Treasure. [click to continue…]
by admin on April 9, 2010
An old people’s home has appealed for period furniture and equipment in order to create a 1950s-style office to help elderly residents suffering with dementia to remember some of the good old days. [click to continue…]
by admin on April 8, 2010
In these times of global recession, people are looking to get more from their furniture. The effects of the credit crunch have trickled down, and now it’s hard to find anyone who’s not feeling the pinch. Increasingly customers are looking for modern modal furniture which can transform itself for a variety of uses.
The sofa bed has been a popular item of furniture for a long time, and is the perfect example of furniture which serves a variety of purposes. While in the past these pieces might have been more functionality than form, in 2010 it is possible to find versatile furniture which still looks good. [click to continue…]
by admin on April 8, 2010
The Residential Landlords Association (RLA) is backing Tory leader David Cameron thanks to his pledge to oppose recent government plans to attempt to break up areas of concentrated shared student housing surrounding popular universities and colleges.
Cameron raised an Early Day Motion calling for a revocation of the order, which came into effect on the 6th April and changes the definition of “houses in multiple occupation” relating to planning concerns. [click to continue…]
by admin on March 24, 2010
While most tenant’s deposits are returned without problems at the end of the lease period or tenancy, deposit disputes have ended more-regularly in the landlord’s favour this year compared to last.
Courtesy of @NobMouse on Flickr
According to My Deposits, 99.4% of private tenants’ deposits were returned without any problems, but landlords are currently being awarded a share of the deposit in 43% of cases, and being awarded the full deposit in eight per cent of cases. [click to continue…]
