1 Currently there is a high demand / low supply ratio for rental properties in the UK
2 Interest rates remain low
3 Stamp duty cuts
What should I look for when buying an investment property?
Where your investment property is will go a long way to determining how successful it is as a rental. A property in an area where rental demand is low could be a bad investment, even if the area is classed as ‘up and coming’.
2 Who your tenants will be
As well as location, you should know the kind of tenants you’re looking to attract to your rental property. Are you aiming for single young professionals or couples? If so, a flat or apartment close to amenities might be a good option for your investment property.
3 The finances
You’re not buying a property to live in – the most important thing with any investment property is that the numbers stack up. Your financial strategy and budget should factor in all potential outgoings against what you can charge as rent for your property in your area.
4 Low maintenance
One of a landlord’s biggest outgoings can often be ongoing property maintenance. But a low-maintenance property doesn’t just mean one that’s in good condition. Often, keeping maintenance requirements, and costs, to a minimum can be a case of keeping hold of good tenants.
5 Capital growth
Property investment with a long-term strategy means you should always look at the potential for capital growth. Firstly, what improvements can you make that will be attractive to renters and give the property’s value an immediate uplift? Longer term, are there plans for regeneration in the area that could produce a spike in property prices?