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Buy-to-let is a money-maker - but only of you remember location location location

Life Secrets - November 2003 - Lady Lea

Investing in buy-to-let is a two way money spinner. You can profit from a monthly income from rentals. You can also generate a big capital profit in due course when the property is eventually sold. But to achieve this, you need to buy the right buy-to-let property. This is what I've learned:

Understand the importance of rental demand. An area with high rental demand has more tenants than properties. Tenants end up on a waiting list to rent. An area of poor rental demand has a lot of available properties and fewer tenants. Landlords have to drop rents to compete or risk having long void periods. To let your property, you need to buy in an area with high rental demand. That's your bottom line! I was talking recently to new investors. One told me they had found the perfect property to rent. It was in a nice block with car parking, close to the park and a few moments walk from a good tube station. I asked them what made them think it would rent. They told me all about the local ameneties - but did not once mention if there was any demand in the area, or if there was already a good supply of properties to let. A good rental investment involves feeding demand with supply.

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