Investing in a property can be a great way to make some extra money. Not only can it be a way to bring in some income if you decide to rent it out, you will also have you money invested in a property which is likely to increase in value. This means that if you need a lump sum you can sell it or you can pass it on when you die. However, it is important to make a good choice when buying a buy to let property.
You need to firstly consider if you want to rent it out. If you do, then you need something that there will be a demand for. It is most likely that rental properties will appeal to those people who are just leaving home and have not yet saved for a mortgage or those families that do not have a high enough income for a mortgage. This means that you will need to consider buying small or cheap. Of course, this will very much depend on the area that you are buying as cities may have a high demand for studio apartments for people that stay in the city in the week and then go elsewhere at the weekends and are looking for something affordable. It is therefore important to know what sort of rental property is needed in the area that you are looking to buy.
Obviously your budget will determine the size and location of the property as well. You will have to decide whether you want a larger property which is not so high end in a cheap location, or a smaller property in a better location which is more high end. You could of course choose something in between. Some people choose a property that they know, perhaps one in their local area, so that they can keep an eye on it, know what the local market is like and know whether the price is right for that property as well.
It can be worth waiting for the right property to come along. The idea of buy to let can be really exciting. You may be in a hurry to start making your first lot of passive income and really want to get going. However, you will need to think about the fact that you will be investing a lot of money and you need to make sure that you make the right purchase. This might mean waiting months or even years before the right property comes along. In the meantime you can keep saving up a deposit and you will be able to either buy something dearer or have a smaller mortgage when you do buy.
Make sure that when you do look at a place you make sure that you check it for problems carefully. Have a survey and make sure that there is no damp or cracking that could indicate expensive repairs may be needed in the future. Check it even more thoroughly than you would when choosing a home to live in as you will be trying to make a profit out of this place, not just make it a comfortable home.