Buy to let is an investment where you buy a property – usually with a mortgage – with the intention of letting it out to a third party. Over 80% of landlords cite investment as a key motivator in deciding to let property
Buying a property to rent has become an incredibly popular way to generate extra income. To get the most from your investment it’s best to do your research, take emotion out of the equation and apply some sound strategic thinking. CPS work with investors of all shapes and sizes from those dabbling with a single property to full-time property investors with extensive portfolios. No matter where you are on the spectrum, your success will be decided by the numbers.
No successful business starts with a blind leap of faith. The more precise you can be about your investment and expected returns, the more successful you will become. So do your maths before you jump in. In particular these critical sums.
Total income per year ÷ value of the property x 100 = % gross yield
(total income – total costs) ÷ the value of the property x 100 = % net yield
Mortgage repayments + estimated refurb costs + vacant time (estimate 30 days per year) + service charge and ground rent (if the property is leasehold.)
Setting rent at the right level is the biggest call you need to make when bringing a property to the market. Go too high and you won’t find a tenant. Too low and you’ll be lumbered with a contract bringing in less money than you need. CPS will help you find a figure that’s just right. We’ll take into account the property and the area to help you find that perfect figure. To devise a winning strategy for your buy-to-let plans, get in touch with the CPS letting team.