Don’t make these buy-to-let mistakes: an expert guide to property investment

Property investment experts from Redmayne Smith share their top four mistakes to avoid when entering the buy-to-let market

If you’re looking to generate a steady stream of income and create long-term financial growth, investing in buy-to-let properties serves as a lucrative endeavor. With rental costs continuing to rise with Zoopla reporting that there was an 11.1% increase in costs for newly let properties in the last 12 months, investors have the opportunity to generate a strong cashflow.

However, without the correct knowledge and guidance, novice investors can fall prey to common mistakes that can hinder long-term investment success and lead to financial losses.

1.Conducting Inadequate Research

Whilst the prospect of investing in buy-to-let properties may be exciting, one of the biggest mistakes a potential investor can make is diving into a buy-to-let investment without conducting thorough research. And by failing to analyse market trends, monitoring property demand and assessing rental yields can result in poor investment choices.

“The wrong property can make or break an investor’s portfolio, so my biggest piece of advice for new investors is to conduct thorough due diligence” comments Gordie Dutfield, CEO of Redmayne Smith, “It doesn’t matter how nice your property looks if it is in an area without decent capital growth or high rental demand.”

A property’s location should also be a significant factor in the research process to ensure prospective investors see the greatest return for their investment. By ignoring investment opportunities on cities that are seeing huge regeneration such as Glasgow, Manchester and Liverpool which have emerged as the top 3 best UK cities to invest in outside of London**, potential investors will be missing out on highly profitable opportunities.

2. Underestimating Property Upkeep

Overlooking the maintenance costs associated with owning a rental property is a common oversight made by inexperienced investors.

The original article can be found here