The Falkirk Property Blog’s Basic Guide on Buy to Let in Falkirk

Being active in the Falkirk property market really does help when it comes to choosing the right property to invest in as you have the opportunity to see which properties in what areas are in high demand, which bring in the biggest yields and which properties give the largest capital gains.  It allows you to understand the market and know what landlords and tenants are looking for. 

All this helps when I have first time investors looking to purchase their first buy-to-let like Gregor who popped into the office a few weeks ago after reading my previous articles. We chat about the basics on choosing an investment property in Falkirk.

Size is not always the main consideration, quality and location are more important. Investing in new-build flats, old houses or ex local authority properties all have merit in different ways, it depends on your investment objectives, timeframes and budget. Before investing there are numerous things you need to research including – but not limited to – cash amounts, mortgages and rates, fixed costs (such as service charges in flats), potential repairs and improvements, furnishings, gross and net yields, plus likely returns on capital employed. 

Houses seem to be more popular than flats in Falkirk, larger bedrooms are better than singles, good nearby transport links are also useful and double-glazing and gas central heating are becoming a requirement for most tenants. Location of the property is also vitally important – the main drivers are access to transport links, good shops and restaurants and in the case of growing families, good schools.

The condition of property should also be considered. Tenants want dry, structurally sound properties in good condition (cracked fittings, marked walls, damaged appliances, grubby kitchens and bathrooms are all a turn off). Think carefully about the size and layout of the accommodation too. Most tenants will dislike small living spaces, odd shaped rooms and bathrooms without natural light. And remember, tenants have a strong sense of rental values so the days of landlords setting the rent to cover their mortgage are gone and they must therefore buy wisely.

A Buy to Let property should look good from the outside (kerb appeal). If the inside is immaculate but the outside isn’t, you will struggle to get people through the door. Ideally the property should have gas central heating, double glazing and a shower as well as a bath.

Think about the age of the property. The younger the property, the less maintenance you will have. If you purchase an older property it is likely you will have to rewire the property, therefore I would strongly suggest that Buy to Let landlords have the gas and electric checks done on the property before Exchange of Contracts. If problems are found the cost of rectifying the issues could potentially come off the agreed sale price.

Two and three beds are the most popular (with two beds usually giving a better return on an investment), but it is essential that you understand the Buy to Let market and complete all your homework before purchase. I would urge all Buy to Ley landlords to carry out a cost analysis before committing and have sufficient funds set aside for potential void periods and major repairs (a new boiler could cost around £1,000, if you cannot afford to replace it then don't buy the property).

If you would like some advice about buying to let, whether you are a landlord with an existing portfolio or someone thinking of investing in the Falkirk rental market for the first time, call us on 01324 469840 or visit our office at 6 Vicar Street, Falkirk, FK1 1JL for further details. The Kettle is always on and we are always excited to get stuck into finding new Buy to Let deals in and around Falkirk. Let us take the stress away from you.

Don't forget to visit www.thefalkirkpropertyblog.co.uk to view back dated articles and deals from The Falkirk Property Blog.