Having made the decision to become a landlord, one of the major considerations is where to purchase the property that you are going to let out. This decision will be affected by a number of things including how much you have set aside to buy the property, the sort of tenants you wish to rent the property out to and what you intend to do with it in the long term.
If you have £150,000 to spend, you are not going to be looking to buy a property in Mayfair! In certain parts of the UK, that amount of money is going to get you anything from a one-bedroomed apartment to a terraced or semi-detached house. However, it may not be located in the ﾓbest street in townﾔ. Donﾒt forget you may need some of those funds for contents.
Types of tenants
Do you want to let the property out to a family, a young professional couple, a single person or to students? If you favour the student market, the rental property will need to be within reasonable travelling distance of the university ﾖ ideally within walking distance. If you like the idea of renting to a young professional couple, then a one-bedroomed city centre apartment may be more appropriate. If you want to rent to a family of four then a three bedroomed semi-detached property with a pleasant back garden, off street parking, close to shops and schools on an estate would be ideal.
Long-term future of the property
What do you intend to do with the property in the long-term. For instance, is it your intention to sell it in 15/20 years and use the proceeds to buy a retirement home abroad or do you intend to let it out indefinitely? Would you want to move into the property yourself in a few years time? If it is the later, you will certainly want it to be in an area that appeals to you to live in.
Other factors to consider could include whether you wish to buy the property within a few miles of where you presently live so that, should something untoward happen with the property in the middle of the night, you can quickly get to it. You may also wish to compare the premiums for landlord insurance for various types of properties and locations as they may differ.
So, as you can see, as a landlord, there are several things that will impact on where you decide to purchase a buy-to-let property.