Investing in in rental property can end up being a very lucrative move if you manage to pull it off. While there’s the typical methods of purchasing a house or letting out a building you already own, have you ever considered a build to let investment?
As the name suggests, this is where you build one or a number of properties with the intention of letting them out and making your money back this way. As aforementioned, if you do this properly and get off to the right start you can make some impressive profits over time.
So in order to ensure this is the case, here are a few useful pieces of advice you can use to get off on the right footing.
Can you Afford This?
It’s common sense that you’ll need the capital or financial backing to start such an endeavour but having wiggle room with this is also useful. Look to get as much behind you as possible but also there are some Government funding schemes you could get support from.
What Market you want to Hit
It’s no secret that the we are currently in ‘generation rent’ where more and more of people are looking to rent rather than buy themselves. What this also means is that there is a big market out there so you need to make sure you’re aiming at the right one.
Typically, renters are younger demographics (students, professionals) so if you are building a property it makes sense to create something that is suitable for their lifestyles. With that in mind then, why not consider construction of bigger multi-tenancy houses or flats?
Do you have the Workforce?
Whether you intend to work on a small or large scale you will need to have a workforce to build your rental properties. This is another significant cost to research and with that there are also all the planning stages and of course building regulations you’ll need to meet.
Do you have the Time?
Finally, any undertaking involving property – regardless of if it’s build to let or not – will take up a great deal of your time so you need to be sure this is something you can fully commit to, or at least have the man hours to handle.
The above is some of the main areas you will need to look into before any work gets done. So make sure you properly consider these and then all there is to do is look forward to what could be a very financially rewarding venture.