There are some important considerations for anybody wanting an answer to the question, “Where to invest in buy to let property?”
Firstly, while there are specialist real estate agents selling quality buy to let properties in the UK, you can simply buy a house or flat and put paying tenants in there.
Also, you could purchase a buy to let property with the tenant already in it, and these properties with a sitting tenant tend to be cheaper than buying on the open market.
You can also buy a BTL property at auction or buy from a relative.
Investing in a buy to let property
There’s no doubt that with buy to let mortgage rates being very low, investing in a buy to let property is increasingly attractive to growing numbers of property investors in the UK.
However, before looking at who sells buy to let properties, it is probably best to research the buy to let market.
If this is a market that you are entering, then you need to make sure that your BTL investment will be a success.
You particularly want this investment to be better than investing your money elsewhere, for example, in stocks and shares.
In addition, you will either be a cash buyer or need a buy to let mortgage and while these are dearer than residential mortgages, you cannot buy a property with a residential mortgage and then put tenants into the property.
Also, if you do have a property with a residential mortgage on it already, then you will need your lender’s permission before putting tenants into your property.
Who is selling buy to let property
The next step when looking at who is selling buy to let property, is to choose a promising area for your investment.
This might mean that you opt to invest in a town or city that is many miles from where you live. For example, the North West of England, and Manchester in particular, has been highlighted in lots of recent surveys as being a buy to let hotspot.
You also need to consider which type of tenant you would like, for example, are you looking for young professional tenants or young families or those who are looking for good transport links so they can commute to work.
This means you’ll need to match the type of property that you can afford from your budget and then look at the locations where these homes are affordable.
More importantly, you will need to buy a BTL property where tenants actually want to live and not where you believe they want to.
From this point you could discuss your needs with an estate agent in that area who may have properties available for a buy to let investment purpose.
Investor seeking a buy to let property investment
If you are not a cash-rich investor seeking a buy to let property investment, then you’ll also need to do some calculations if you require a buy to let mortgage.
Typically, the buy to let lender will be looking for the rent to cover 125% of the mortgage payment and some lenders ask for up to 150%.
They may also demand that you have a 25% deposit, and sometimes they may request more.
The other issue that you should consider is the cost of maintaining your investment property effectively and have enough cash set aside for expensive repairs, for example, replacing the boiler.
It may also be worth looking further afield and investing money to do up a property that is in a poor state of repair. This will certainly boost the rental yield, or the profitability of the rental home.
Landlords keen to sell their BTL homes
Unless you are buying a property at auction, and there are lots of these taking place around the country with home sellers wanting a quick sale, you may find that there are landlords keen to sell their BTL homes.
Or you could find a property using an online portal, such as Zoopla or Rightmove, and if you do then it’s always worth haggling over the price, particularly if you are a cash buyer.
You will have an edge over a first-time buyer and you will not be caught up in a chain, so the seller can look for a quick exchange of contracts.
You may find that a landlord who has had a rental property for a lengthy period and is looking to leave the market may also be keen to accept a cheaper offer to enable a fast sale.
They will be cashing in on their capital gains, that’s the rise in the property’s price, and may be keen to deal with another potential landlord.
Looking to sell buy to let properties
Finally, this is our quick guide to finding those who are looking to sell buy to let properties:
- Estate agents: Find the area you want to invest in and contact estate agents telling them you are a property investor and they will search the market for you
- Online portals: Regularly visit sites such as Zoopla and Rightmove to see if there is a quality home that you could buy and turn into a buy to let offering
- Auctions: You will need to be a cash buyer, or have quick access to cash such as a bridging loan, because you need to pay up within the auctioneer’s deadline. These homes are very cheap in theory, but in reality you’ll find lots of other property investors bidding at these auctions for buy to let properties.
So, when it comes to finding out who is selling buy to let properties in the UK, you simply need to pay attention to the property types and areas where homes that you want to buy are being sold – regardless of whether they are a residential property already or are being sold by a landlord with a sitting tenant.