CBD Buy-to-let

A question from one of our landlords!


"Hey Guys, I want to build a portfolio of buy-to-lets, how do I know what area is best to invest in to achieve my goal?

"Our reply:Great question, the first thing you have to understand is that before investing in any area, you HAVE to do your research!!!
Its simple: We've found that the most important factors in researching an area can be answered if youask yourself these 3 questions:
1- What type of tenant am I looking for?
2- What type of property would my tenantideally like to live in?
3- In what area will I find that type ofproperty?

All these 3 factors (Tenant, Property& Area)must be looked at together to assess whether the area is good for investing in Buy-To-Let's. When deciding what type of person you are looking to rent to - create a profile for them:

For example, ask yourself if they are young professionals, students, or if you want to rent to families. Once you've decided WHO you'll be renting to, look at the needs and wants of that type of person. If you decide to rent to students, they'll want to be close to their university... The best way to find out about this is actually chatting to people who represent your 'target tenant'. Find out what features your tenant values most and if they are prepared to pay extra for any of them. At this point, you should have a fairly clear idea of WHAT you'll be renting and it'll be time to look at WHERE you'll find the type of property you're looking for. Go back to the profile you've made for yout 'target tenant'and find out which area supplies all the attributes you're looking for. Consider things like the transport connections in the area, the local amenities, how are the schools in the area you're looking at, what is the quality of the local environment, how are the employment opportunities and how relevant are all these factors to your target tenant. Remember: these 3 attributes are inter-related and must be looked at together when assessing whether there is rental demand in aparticular location. Now, the next question you need to answer is:
Can you make any money or does Buy-To-Let financially stack-up in that area?

The CBD is Fast becoming a hot spot for Buy-To-Let investors