Buy to let investing is a profitable and popular market. In Swindon, the buy-to-let market is an appealing prospect for landlords or those just starting out with investing in their property long term. When it comes to making money from your property, investment is highly worthwhile and can be a great way to generate passive income.
At Miles Byron, we don’t deal with lettings, more focused on home selling and buying – but we do understand the appeal to landlords who are looking to grow their portfolio with property in Swindon. Our team has come together to create this helpful article, exploring some of the ways you can profit by renting out your property as a landlord, or in other ways!
Getting a Buy-to-Let Mortgage
Unlike a traditional mortgage, a buy-to-let mortgage is for landlords and property investors looking to purchase a property for the sole purpose of renting it out. Many lenders do consider this type of mortgage a higher risk, and so there tends to be stricter criteria in order to qualify for one, which differs from lender to lender but could include:
Existing Homeownership: Many lenders won’t allow you to get a buy-to-let mortgage unless you own your own home, or have a property with a mortgage already on it.
Higher Deposit: While normal mortgages ask for a deposit of 5-20% of the property price, lenders for a buy-to-let mortgage may ask for a minimum of 25%.
Good Credit: A mortgage is a large chunk of change and can be a lifelong commitment to pay back, so reducing spending in other areas is a must.
Age Limit: Many lenders enforce an age limit on applying for a buy-to-let mortgage, which is usually around seventy five, but every lender is different.
Separate Income: You may be asked to provide evidence of income outside of rental yields, including employment and self-employment – usually over £25k a year.
If you’re a landlord already, or interested in getting into renting as a property investment, we recommend doing a lot of research beforehand to make sure all your ducks are in a row before proceeding.
Finding The Right Property
A lot can go into finding a property that suits your needs. For example, you need to determine exactly who you will be renting to, do you want a six bedroom home for student accommodation? Or how about a starter home for a young couple? In Swindon, there are plenty of different properties available, and in terms of buy-to-let property investing, they all have their unique benefits and disadvantages.
In Swindon, you will find a variety of properties for sale – including flats, bungalows, terraced houses, and more. For more information on the type of properties available in Swindon, check out our blog on the Types of Property Available in Swindon now!
Proper Management
Renting out your property is more than just buying a house, putting it on the market, and collecting rent. To be a landlord, you must stay on top of repairs, have a boiler and gas check carried out yearly, respond to issues with tenants, and perform other tasks that could become expensive. In addition to this, you must stay on top of the rules and legislation that comes with being a landlord, or you could be prosecuted. Damp could be a major issue that can lead to several negative health consequences, so frequent checks in areas of the home that can let moisture build up is a must.
Other Ways to Profit with your Property
If you don’t want to go as far as providing a landlord service, there are other ways you can use your property as a way to make a profit. For example, AirBnB allows you to rent out your property in much the same way a hotel would rent out rooms, except guests will have larger spaces and access to a wider range of amenities. You don’t even need to have a separate property to do this – going away for a week? Why not list your property while you’re away to earn some money while you aren’t there? Many homeowners even convert spaces in their property to act as guest bedrooms to accommodate somebody staying over for a few nights. The possibilities are endless!
For more information on property available in Swindon, contact Miles Byron now!
To find out more, or to speak with our team about the property options we currently have in Swindon, get in touch with Miles Byron today! We offer a range of estate agency services, including properties in Swindon, and property valuations, so reach out now! For more of our expert advice, we also have blogs dedicated to what to look for when choosing an estate agent, top tips for a speedy sale, and the hidden costs of home ownership!