Whether or not investing in buy-to-let property is still considered a good investment depends on a range of factors, including mortgage rates, rental demand, local market conditions, and your financial goals.
In this blog post, we’ll explore a few crucial factors that landlords should keep in mind when selecting properties for investment or considering how to optimise their investment assets in the near future.
Invest in High Yield Areas
While many landlords strive to own property in London, given that prices have historically shown appreciation over time and rental demand is higher than ever, it can be a challenging place for new investors to enter the market. This is especially the case for those with limited capital.
Elevated property prices in London often result in lower rental yields compared to other regions in the UK. And we would always recommend that investors seek areas with lower property prices and higher rental yields in order to generate a better return on their investment, such as towns and cities in the Midlands and in the Bedfordshire area.
Some of the most important things to look for are proximity to amenities, public transport, low crime rates, schools, and employment hubs, which will all significantly impact a property’s attractiveness to potential tenants and future buyers.
Take a Long-Term View on Returns
Investing in areas with anticipated growth, urban development, or infrastructure projects is an important consideration for landlords who care about property appreciation over time.
Obviously this view will need to be balanced with current rental demand and prices in order to sustain a profit in the short-term. In our experience, many properties throughout Bedfordshire and the Midlands offer strong signs of long-term appreciation while also offering decent yields today.
Add to this any renovation work or home improvements and you could also boost a property’s value in just a few years.
Guaranteed Rent from Estate Agents in Dunstable
While it’s challenging to guarantee rent on investment buy-to-let properties, thorough tenant screening, including credit and background checks, automated rent collection systems, and maintaining open communication with tenants can reduce the risk of inconsistent rental income.
At Bedford Accommodation Bureau, we go one step further by offering a Guaranteed Rent scheme to landlords as a standard part of our fully managed service, with no hidden or additional costs involved.
To learn more about this program and how we might be able to help you with your property investment, don’t hesitate to get in touch with us. We have an excellent team of active estate agents in Dunstable, Luton and other parts of Bedfordshire.
