Buying through Mill Bay Homes offers investment buyers the opportunity to maximise the returns from their investment. All our homes are built to a high specification and come with a 10 year building warranty which means your property maintenance costs should be kept to a minimum and be greatly reduced compared to buying a an older second hand property.
Know your area!
It is vital you understand the types of property that are most sought after by tenants in your area. Remember this could be very different to the most desirable from a owner-occupier’s perspective. Keep in mind that you’re not searching for your own home, try to remain open minded and listen to any advice you are given from those in the know (Local Estate/Letting Agent).
Know your target market!
Are you looking to rent to students, professionals or families? Each category will be slightly different in terms of the advice given and therefore the most suitable properties so you need to be clear about this before beginning your search.
Estimate the return on your investment!
The return on your investment is extremely important. The general rule of thumb is that a return of above 4 percent is good although this will vary from area to area. Anticipated financial returns are easy to calculate by dividing the expected annual rental income into the purchase price.
This figure is a great starting point but remember that you will need to consider the running costs and any investment you may need to make in the initial redecoration, renovation and/or equipping of the property. It is important to sit down and consider ALL of the costs involved before taking the plunge.
Hopefully these tips have given you a starting point. However for more detailed advice you can contact a Mill Bay Homes Sales advisor for more information.