When it comes to purchasing property for buy-to-let purpose, it’s essential for the landlords to think as renters not landlords. You must ask a few questions from yourself that if you were the renter and would have asked to live in a certain location, would you say yes or no? Once you started thinking this way, then you would come up with the fruitful results for sure.
Generally, landlords just take a sneak peer of the properties by thinking that they would be easy to rent out whereas the opposite is often the case. This is why you must behave as a renter to find out a beneficial property that could attract more tenants on good rent packages. Of course, buying a studio apartment in the isolated area with no transport and no amenities close by will never attract any visitor.
So, let’s just find out the few obvious traits of a city or town that attracts more buy-to-let investors. Read them now…
Commuter Belt Cities
It’s not just about tenants but it’s also about you and your rental income. There are many areas which tend to achieve higher yields in comparison others. A recent research has showed that landlords in the commuter cities such as Elmbridge, South Bucks and Three Rivers are able to earn the higher rental income out of London. Commuter belt cities are the cities which have more transport links and commutability. So next time when you get to buy any property, just find out that how quickly an average person gets to reach to the city from the nearby workplaces, marketplaces etc
Family Friendly Towns
The life style of affluent families is comparatively different and their requirements are also different than the singles or a group of college going students. Families with small children require a more peace and suburban parts of the town rather than the hustle and bustle of the city. The location should have spacious environment with green spaces and parks for the kids. And of course, there should be schools too. Therefore, buying a property in a good catchment area is a definite win.
Cities with Universities
Education is the basic need of all individuals so university town is the perfect option to invest for buy-to-let property. The reason by these towns invite more people is the fresh waves of students that reaches the city to rent property in the popular spots. There would be a continuous flow of tenants all throughout the year. According to the data from Zoopla in 2013, northern cities such as Glasgow, Manchester and Hull were high-yielding destinations for student landlord investments.
Under Development Towns
Cities or towns that have continuous renovation are always on the wish list of the buy-to-let investors. If you indeed wan to give out the property on rent then it would be better to buy a property that needs some tweaks rather than the full on work – or you would be able to rent out the property at a reasonable rental rate. Moreover, you also have an option to dole out the discounts options to the students by saying that there is a minor construction going on, that’s why discount is being offered. Cities with plentiful older properties are always the perfect hotspot for buy-to-let investors.
Small Towns adjoining bigger ones
If you are actually in mood to make huge ROI then it’s mandatory for you to check out those small cities which are closer to the bigger towns. This is called as the ripple effect by which many of the London’s cities have benefitted. This is majorly happening in the large cities which offer a great opportunity to buy-to-let investors to make money.
Make sure that, before investing, as an investor you make some research from your end and have a clear plan by reading out the minds and needs of your potential market.