5 Easy Tips to Help You Buy Residential Property to Let and Secure You

Buying a plot of land may be better than buying a ready-to-let residential property in quite some ways. For one, if you need to sell a plot of land, you won't have investors turning up their nose at the property just because they found the kitchen to be too small or the basement to be an unnecessary addition!

More importantly, a plot of land is a limited resource and you can be sure that its price will appreciate fast. However, to reap profits, you'll have to wait for the price to appreciate so that you can sell it. On the other hand, a residential property can generate profits immediately if you let it.

Sure, there may be times when you won’t have a tenant, but investing in ready-to-let residential property can be the easiest way to generate income for retired seniors or people with limited mobility who need to use a wheelchair or a mobility scooter to get around, and also for anyone looking for a source of extra income.

Here are some top tips to help you select the right ready-to-let residential property and secure your future.

Don't Let Emotions Take Over

Remember that you are buying a property so that you can earn profit from it; you aren't looking for a home. You have to take a rational decision so that you can benefit from your investment.

If you find yourself being drawn to a property just because the décor appeals to you even though it is located in a remote area and is unlikely to draw tenants, you need to think this through again. If you're looking to make a worthwhile investment, you can't buy residential property only because it is a visual treat.

Target the Tenants

You are sure to find tenants if you buy a to-let property that appeals to a wide range of potential tenants. For example, a large family home would appeal only to certain tenants, whereas a two-bedroom apartment would appeal to a lot of people.

You'll also need to consider the location carefully. If you're targeting college goers or working professionals, you would want to buy a residential property in an area that is well-connected by road and rail, and has restaurants, grocery shops, and supermarkets within walking distance.

Youngsters would also prefer living in an area that has an active nightlife. On the other hand, families would prefer quiet neighborhoods that have good schools nearby. A quiet neighborhood would also attract older or retired people.

Go for New

If possible, consider investing in property that has been recently built. Again, this will appeal to a wider range of tenants and you won't have to spend money on repairs anytime soon.

If you can’t lay your hands on a new residential property, or if it’s way beyond your budget, look for older properties. Be sure to inspect the property well- you’ll want to look for signs of mold, condensation, dry wall, wiring faults, plumbing leaks, etc.

Talk about any problems you notice with the seller. Perhaps the seller can get everything fixed for you. If not, you can always haggle over the asking price stating the number and effect of problems you noticed!

Don’t Rush to Buy

As you’re looking to invest, you can go at your own pace. You needn’t rush and buy a property without spending enough time to look at it and think over it.

Remember to never let the seller feel that you’re more than willing to buy their property. You don’t want to be at a disadvantage when quoting offers only to have them turned down because the seller knows you’re keen on buying the property.

Be patient and walk away if your offer isn’t being accepted. You will eventually come across the right property for you.

Add Value to the Property

Once you find a residential property that suits all your criteria and you have completed all the paperwork, you should think of ways to add value to it. If you want to maximize yields, you'll have to do something to add that special element to the property.

Perhaps the property needs extensive repairs. By getting all the repairs done, you can be sure to attract more tenants. What's more, you'll be able to ask potential tenants for a higher rent!

Furthermore, you can also make changes to the property so that it appeals to certain groups of tenants. For example, if you're targeting tenants with kids, you might want to make the property child-proof by fencing the pool.

If you're targeting senior tenants, you'd know that a lot of them have limited mobility. If the front door is elevated, you can install a ramp so that those using a wheelchair or a folding scooter won't have trouble getting in and out of the house.

Conclusion

If you’ve got spare cash and if you’re looking for a way to generate a steady income, buying a residential property to let can be the best option for you. In case you don’t have the extra dough, you can always consider getting a buy-to-let mortgage. But be sure to do your homework, though!

Do weigh the pros and cons of approaching a professional letting agent to advertize and manage your property too. With the right decisions, and taking help from the tips mentioned here, you’re sure to secure your future by investing in a residential to let property.