It’s becoming increasingly popular for retired people to invest in buy-to-let property for sale. Purchase in the right place (at the right price), and you can enjoy a solid rental income, in addition to profit from capital growth.
If you’re retired, and want to generate a good pension income from a UK property investment, it’s imperative to buy wisely. However, this can be more complicated than you might think! Here’s a helpful guide, with tips on how to invest in UK property and make a good profit for your retirement.
Selecting the Ideal Buy-to-Let Property for Sale
When you’re browsing the market for property investment opportunities, consider the following:
- Who are you planning to let the property to? You’ll need to know who your target demographic is, as this will affect your property choices. For example, young professionals like to be near transport links, and also close to the city centre. Students will obviously favour properties that are close to the university campus, and families will be looking for homes near good schools.
- What is the rental yield like? To maximise profits, you should look in areas that offer great rental yield. Cities in the North are performing very well at present (notably Sheffield, Liverpool, Glasgow and Manchester) – though for a more solid idea, it’s wise to talk to a property investment agent, who will help you to pinpoint exact high-yielding locations.
- How much do you need to generate? Work out how much you’ll need to enjoy a comfortable retirement, then go from there. Remember, you don’t have to be limited to just the one property. Many investors develop property portfolios, which generate sizeable monthly incomes.
- Who will manage the property for you? Chances are that you’d rather enjoy your retirement, than spend it worrying about your tenants. Being called out at 4am to fix a burst pipe isn’t terribly pleasant! If this is the case, you’ll need to explore management options – many letting agents will happily manage the tenancy for you, but this comes at a price.
- Is the area popular? There’s no use investing in a buy-to-let property for sale if it’s going to stand empty for ages – as this won’t generate any income for you at all, and may even cost you money in the long-run. Check that the area has a flourishing tenant population and that demand is high – again, a property investment agent will be able to provide this information.
- Factor in your other costs. There’s plenty of money to be made from investing in UK property, but this doesn’t mean you won’t have to pay out some money in the process! In addition to the cost of the property, you’ll also need to factor in insurance, letting agent fees, maintenance costs and any other fees associated with the purchase of the property.
The Buy2Let Shop Limited
If you’re considering UK property investment as a retirement option, but aren’t sure where to start, get in touch with The Buy2Let Shop. We’re a team of expert property investment agents in London, and we’re here to take the stress out of the whole process – from recommending top areas to invest in, to finding the right property, at a price that suits your budget.
To learn more, simply visit The Buy2Let Shop website today.