Most Helpful Tips for Generating Income from Rental Property — Escudero and Brown Review
Investing in Property can be a lucrative and successful investment, however, it will be full of risks too. There are also a variety of investment options in the property market, but the buy-to-let option increasingly be popular these days. The market can be confusing, but below mentioned tips shared by Escudero and Brown leading USA property investors.
Tip#1– When you have decided to enter the buy-to-let market, the most important thing which needs to consider is the right choice of property. It will be sounded little obvious, but it really does matter and the fact is, most of the buyers do not take the time to, think about this problem and later on regret their decision when they can’t rent it out.
For an instance, a two bedroom flat is a good option to rent as it can be shared by more people, however, three bedrooms with a terrace will be awesome option to rent out as many people can share it, especially in the area filled with students.
Tip#2– Another important factor to look upon is that buy the property for investment purpose only. Make it your mind that the property which you are looking to buy is to rent purpose. Only. Don’t decorate it or give a personal touch as you are going to live in it. To get the maximum investment returns to make a decision for business not personal.
Tip#3– It is advisable to hire a mortgage broker who helps you to locate the best buy-to-let property. To choose the buy-to-let option above, all investment options is a tough task to so hire a professional to minimize the risk. A good mortgage broker like Escudero and Brown review and represent you in every deal efficiently. Work with one agent instead of working with multiple agents.
Tip#4– To increase the chance of maximum return always find a property near to a good transportation system. Renters always prefer to get an accommodation where they can easily access public transportation.
Tip#5– Establish a realistic budget by considering the cost such as legal fees, stamp duty, decorating expenses and ongoing mortgage costs. Generally, investors fail to remember these extra expenses. Keep money aside for ongoing repairs and maintenance.
Tip#6– You can go for a full management, letting service in which a letting agent would take up all your worries of managing the property, collect rent and choose suitable tenants. But this service will consume around 17% of your annual rent.
Tip#7– Most crucial tip for buy-to-let investors. Do not forget to buy an insurance for your property.
Tip#8– Becoming a landlord is not an easy job. You have to check your legal obligations like fire, safety and health issues. An annual gas check is recommended by a professional.
Tip#9– Refer to a tax consultant to determine how much tax you must pay. Rental income is subjected to tax deduction, however you may also pay capital Gains tax. The length of time you owned the property and your tax status will determine your Capital Gains tax.
Tip#10– Which is very important, do not enter the buy-to-let market in the hope of making huge money quickly. You have to be patient to make a lot more money!