The Pure Commercial Finance Guide to Buy-to-Let Investment Property Development | Property Investment | Uncategorised 16th August 2016 | By Gareth Morgan If you’re considering becoming a buy-to-let investor then you probably have a lot of questions on everything from the type of finance you need to how to circumvent void periods. So, to save you time spending hours trawling the net to find the answers to some of your queries, we’ve created this extensive guide. Investing in Buy-to-Let Residential Property Purchasing a second home for the purpose of added income is a popular choice for investors as, despite the recent Brexit vote, this tends to be a less-risky investment than other available options. There is also the chance of achieving a decent return if you buy carefully. How Are You Going to Finance the Purchase? If you are intending on purchasing a property for the sole purpose of renting it out, you may be eligible for a specialist buy-to-let mortgage. Many people also use savings or cash from another property sale to begin their venture as a landlord. Read more: Invest in Your Golden Years: Property for Retirement Though, do note, if you decide to buy at auction you will need to have your finances in order prior to putting in an offer, as you will have just 28 days to complete the sale. If this is not possible, then bridging finance may be used to cover this gap between completion and a mortgage being finalised. Read more: Your Complete Guide to Property Auction Sites Have more questions like ‘can a first time buyer buy to let?’ or ‘how many buy to let mortgages can I get?’. Don’t fret, our trained finance brokers are always on hand to help with your queries. You can contact us here. Who Will You Market the Property to? Depending on the area you are looking at, there may be particularly strong demand from one type of buyer. This is often young families, single professionals or students. Bear this in mind when searching for your ideal property, as high-demand means there will be very few instances of your property being vacant, ensuring you a steady income. If you choose a student populated area, we have created a number of blog posts to help you: Read more: How to Keep Your Student Buy-to-Lets in Top Condition Investing in Private Accommodation for Students Should I Invest in Property for my Student Children? If you think you may opt for a holiday home instead, that you could possibly use too, then you may want to read this guide. With a high footfall and short term rentals, there is a higher risk of vacancy and costs should be carefully considered. Depending on the amount of time you intend on spending at the property you may not be eligible for a buy-to-let mortgage. How Will You Manage the Property? Do you have the time to rush to the property should there be a water leak or if the power fails? If not, you may wish to enlist the services of a lease agent and a maintenance firm who will find tenants and respond to any maintenance calls on your behalf for a percentage of the rent. Not sure which is best for you? Then read this. Investing in Buy-to-Let Commercial Property Purchasing and letting commercial property is slightly different to residential property. There is specific finance for this kind of purchase (you can learn all about this here) and leases tend to be longer term. How Much Rent Will You Charge? Location, location, location; where your commercial property is located can hugely affect how much rent you can charge for it. Footfall is hugely important to retail and food businesses, whereas office renters are likely to opt for an out of the area location in order to get more square footage for their budget. Read more: How Many Sq. Ft. Will Your Money Buy? Is a Property Really Worth Your Investment? Like with a residential purchase, it’s important to have a survey and valuation of any property you’re interested in, in order to ensure you pay its correct value. Once you know this, weigh out the pros and cons to see if it is worth your investment or if you should place your money elsewhere. Read more: Your Ultimate Guide to Property Surveys The 4 Perils of Property Investment Other Things You Should Consider Before Buying-to-Let Will You Purchase the Property Alone or With a Partner? Splitting the cost of purchasing a property lessens the financial burden, but if you do decide to purchase with a business partner, friend or loved one, make sure to take due care with the paperwork. Many a relationship has been ruined by a power struggle, through feelings that another isn’t pulling their weight or simply by money issues. If you’re battling with this, read the pros and cons of joint property investment here. What Are Your Plans for Future Investment? Is your buy-to-let venture a one-off way of investing in a relatively safe market or is it the beginning of a brand new business career as a landlord and/or property developer? Although you may not have immediate plans to expand your property portfolio, this is something that should be considered. Read more: A 10-Step Guide to Growing Your Property Portfolio Quickly Pure Commercial Finance Can Help with Your Buy-to-Let Finance Whether you decide to purchase a block of flats or an end-of-terrace, an office or a whole factory, our experienced commercial finance brokers will do their best to find you the appropriate package for your needs. Give our office a call today on 02920 766565 to request a call back or make an appointment. And for further advice on commercial finance or the latest buy-to-let news follow our frequently updated blog.