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Steps to Analysing a Buy to Let
|Be clear about your Buy to Let investment objectives, eg capital growth or income?|
|Calculate how much you have to invest to cover a deposit and costs to let|
|Research areas to find out which have the best capital growth/income potential|
|Compare areas via key trends such as employment, average wage, age trends as well as new investment in the area such as better transport links|
|Check the property is in an area where the tenant population is increasing,
|Use local agents who are members of the Property Ombudsman and ideally
NALS and ARLA
|Ask local agents to help you work out which roads and property type will give you the best return on capital growth or income|
|Consider the pros and cons of buying a flat versus a house eg service charges|
|Compare council tax from one area to another (reduces costs during voids)|
|If considering new build deals with rent guarantees, check what happens if the rent guarantee goes bust|
|What costs will you incur to renovate the property so it is let legally?|
|Include likely maintenance costs over a 20 year period (eg will the property need a new roof? Boiler?)|
|See which properties you can secure the best deal on, for example is a seller desperate so you can offer 10% below the true value?|
|Check insurance costs|
|Know and understand the tax implications of renting or selling the property
in the future