Ask Lorraine – I’m looking to get into buy to let in Tamworth

🙋  Landlord’s Question: 

I’m  looking to get into buy to let to help the shortfall in my pension which the government has stolen from me.  I’m keen to buy in Tamworth,  any quick hints and tips?

Welcome to Tamworth
Welcome to Tamworth

Lorraine’s Answer:

If you are considering becoming a landlord and buying a property to let out there are many things to consider. I think the number one thing is to decide exactly what you are looking to achieve.

Is it purely an income to subsidise your pension, capital growth, or even an investment that can be passed onto your children that you are looking for?

As a rule of thumb, you generally find that property with a high yield does not obtain a high capital growth and property with a high capital growth does not usually net a high yield.

The majority of landlords tend to buy a property that can give a decent growth potential with a yield that covers their costs plus a little extra.

The average yields in Tamworth are 5 % – 6%

So what  should you buy?

Landlords tend to buy locally to them as they have the knowledge of their own area and do not want to travel too far if they manage their own  properties.

I personally like a Victorian house, lots of character unlike the boxes of today, however the purse strings tend to be open a lot more on these properties, so I would say a two bedroom modern house which is in a good location would be a good bet.

Always buy a freehold property so that you don’t have the yearly maintenance charge eating into your yield and I wouldn’t recommend  buying a four bed if you are looking at single lets. Generally the bigger the house the lower the yield, plus larger properties tend to have more wear and tear from having a large family in residence.

Take into consideration any fees to purchase the Buy to Let before you start your property journey, stamp duty is payable… Details here

and have you sought advice as to any advantages of setting up a limited company, it’s usually only an advantage if you are purchasing a number of Buy to Lets, are in the higher tax band or looking to become a property tycoon.

Buy to let is still a good source of income even with the Government screwing over landlords. I’m always banging on about capital growth, so purchasing a Buy to Let should be a long term plan and not for the faint hearted, buy today and jump tomorrow.

*** If you are thinking of getting into the property rental market and don’t know where to start, speak to us for impartial advice and guidance to get the best return on your investment. For more information about other potential investment properties that we could introduce you to, or to ask about our thoughts on your own investment choices, call us now on 01827 425195, you can always email me on Lorraine@hallandthompson.co.uk***

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