So I think a great deal of decision making around buy to let is doing your research and planning in advance of making a decision to acquire a property or indeed to start looking. So I think you got to satisfy yourself that it’s the type of investment you want to make, do your research, work out what it’s likely to cost you to buy the type of property you’re interested in acquiring.
Do you want a two -bedroom modern property which is going to let very easily, you’re going to have limited maintenance costs, but your return is likely to be lower. Or do you want a block of 10 apartments, which is going to have significantly more management resource, maintenance requirements and other costs such as insurance that you have to deal with. return, it’s simply a question of working out what’s the property gonna cost me, what sort of rent to my anticipated to get from those properties and if I’m needing funding to make that investment, what sort of Bank finance costs am I going to against expenditure against the purchase price of the property to work out the return.
There’s lots of quite helpful resources online to look at buy to let investments where you can input your provisional rental growth, rental income and the cost of buying properties to give you an underlying investment return. There’s plenty of ways to work that out for yourself.
