Best buy to let investments in 202302-03-2023 | Other
With everyone on the lookout for a new passive income stream, you might be wondering where are the best buy to let investments in 2023.
Gone are the days when you relied on one stream of income. In more recent years, people are seeing the benefit and security of having multiple channels of income to safeguard against unforeseen financial hiccups.
Our economic climate has of course thrown a few curved balls at us all. Looking at reliable passive income streams such as a buy to let investment is really taking the fancy of so many of us.
Why do people own buy-to-let properties?
The property market has had its ups and downs over the last decade. However, once you become a multiple property owner, the ability to retain high-yielding rental properties seems to become easier and easier.
A well-oiled rental property business can see to make an additional average of £15,000 in income for a landlord.
How do I find a good rental property?
There are some ingredients that make for a good investment. By looking at the location, seasonal trends, surrounding environment and buildings and of course, research.
What is a good location for rental properties?
You might want to start with the university cities to find the best buy to let investment in 2023. Cities such as Norwich, Manchester and Warwick all offer a range of high-yielding properties suitable for the student market.
The student market offers higher yields because you’re able to charge fair rent per individual rather than one family. This is known as an HMO; a Home of multiple occupancies. A tip for landlords looking to establish an HMO, you’ll need a license if the property is housing over four tenants who are not related.
What is the best buy to let investment 2023?
If you’re not scared of getting your hands dirty, a little DIY could add a ton of value to your investment property.
More than ever, people are taking on project properties that may have seen better days. With the location being key to many properties holding their value, landlords are looking beyond overgrown gardens and dated kitchens.
Being handy has never been easier with excellent youtube videos to guide you through the process of tiling and decorating.
However, make sure you’re not overspending from the offset. We mean your money and your time. This buy-to-let investment is meant to make you money, not drain it. If you’re in doubt over your own capabilities, it can be more cost-effective to have work carried out professionally. There’s a large difference between repairing water damage and coating the wall with paint.
The best investment buy to let checklist
Our checklist for finding the best buy to let investment 2023 would be these key points below
Choose a great location
Manchester, London and Bristol hold the top spots for high-yielding rent. This is the amount you set to after costs. However, the initial purchase in London, for example, can be extortionate. Don’t rule out other regions of the country before you find your ideal location.
Find a hidden gem
As we spoke about above, don’t go for the flashy, high-tech apartment. You might get caught out with hidden costs such as ground rent or even find that apartments don’t allow subletting or holiday rentals (f that’s the market you’re looking into.)
Look at the surrounding area
What does the area have to offer? National parks, universities, a new high-speed train line in development? Think ahead and understand the potential of the area. Notting Hill wasn’t always glamorous Notting Hill. Areas are under constant development so check out planning permissions through your local council.
In hand with this, looking at any applications for planning permission could make all the difference if you’re looking to invest in a buy to let that has a stunning view. The last thing you want is a car park or row of shops devaluing your investment.
How does tourism affect your property? If you’re looking to set up student accommodation, how does the term time influence your rental income?
If you’re looking to invest by the seaside, how does tourism impact your tenants ‘enjoyment of the peace’. These are considerations you may want to take your estate agent about before you put that deposit down.
How do I get landlord insurance?
Once you’ve got your buy-to-let property, you’ll want to organise your landlord insurance before you start the assured shorthold tenancy agreement. Get in touch with CIA and we’ll be happy to put your mind at rest with a policy that’s got you covered.
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