When searching for buy-to-let property for sale, it’s important to bear in mind that you’re essentially seeking out a house that offers two profit streams – rental yield and capital growth.
Rental yield is what you’ll make each month from your tenants. Capital growth is your longer-term investment potential – and is equally important. If you’re thinking of investing in property in the UK and you want to work out your ROI potential, here’s a guide to help you.
Property Investment Opportunities – Working Out Rental Yield
Your rental income is the amount of money you receive each month from your tenants. However, this doesn’t equate to pure profit. As a landlord, you’ll need to invest money into your buy-to-let property for sale, which must be taken into account when working out net profit for the year.
Typical things you’ll need to spend money on include:
When calculating rental yield, remember that your property might not always have tenants – and may stand empty for a period of time. Of course, it’s difficult to predict if and when this might happen. However, a letting agent should be able to give you an idea of rental trends in the area – which will help.
Predicting Capital Growth
In addition to generating a solid rental income, your buy-to-let property for sale will also be generating a longer-term form of profit, in capital growth. Capital growth is not guaranteed, and depends largely on the property market at the time; but given that house prices continue to rise across the UK, it looks likely that your investment should yield good returns in the future.
To get an idea of capital growth potential, it’s worthwhile talking to a specialist property investment agent, who will have in-depth insight into the market, and who will also offer insight into price trends and predictions for future returns.
The Buy2Let Shop Limited
If you’re looking for buy-to-let property for sale, and want help with finding the right house for your needs, talk to The Buy2Let Shop. We’re experienced property investment agents in London, and we’ve got a wide range of property investment opportunities on our books, which aren’t available to the general public.
We also offer assistance with buying a house at auction, and hold regular property seminars for investors looking to brush up on their knowledge of the market. To find out more, simply visit The Buy2Let Shop website today.