As a landlord, it is important to make sure that any investment you make is targeted at the right people and in the correct area of the country.
More and more landlord mortgages are being approved all the time, so it is vital to ensure that you choose the sort of purchase that suits you best. Do you want to look somewhere where demand is very high but so is the purchase price, or do you want to head somewhere where initial outlay is less and returns are somewhat more modest?
It is all about knowing how to find the areas that could fall under the banner of property hotspots 2013 and purchasing there.
For example, one of these might be London. The capital can be very expensive to live in and to buy homes in, but demand will always be high and you will see a great level of income and very few void periods as tenants will always be waiting to snap up your home.
The same can be said of most urban areas though, and this means that it might actually be better to look at other regions if this is the sort of thing you are looking for.
For instance, in northern cities like Manchester and Leeds, the initial price of purchase is far lower. However, due to their large populations and considerable student contingents, it is fair to say that you will have a constant level of income and higher than in other areas outwith cities.
Finally, it can be another option to look towards areas that are more inclined towards families. For example, Southampton in Hampshire was reported last month as being the area that sees the highest rate of rental yields in the whole country, with low prices and high rental costs.
The bonus of renting to families is also the fact that it is likely they will stay for longer, giving you a consistent income and meaning you do not have to deal with the price and inconvenience of changes in tenant, which mean new contracts, dealing with deposits and obtaining references.
Source: Zoopla
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