Ten things you need to know about... buy-to-let ¦ Property Guides on Times Online

- Don’t expect to get rich quick. Buy-to-let is a medium to long-term investment: you should be looking at a timescale of at least seven years.

- Choosing a buy-to-let investment is not like buying a home for yourself. Whether or not you like he property should not come into it: you need to carefully research your market: who are the tenants in the area? Are they young professionals, students or families? Similarly, when you furnish and decorate the property, keep it as neutral as possible.

- Steer clear of properties with potential maintenance problems, such as through with large gardens or a lot of woodwork.

Related Internet Links

• Property guides

A guide to househunting on the web

Househunting goes high-tech: technology is transforming the way we search for our next home. Our buyers test-drive top property websites

• A step-by-step guide to selling your home

• Gumtree founder, Simon Crookall, puts his £1.5m home for sale online

BACKGROUND

• Why can’t we sell our home?

• ‘I didn’t want a profit; I just wanted out’

• How to sell your home in a hurry

BACKGROUND

• Overseas property: where, how and what to buy

• How to get onto the property ladder

• Guide to buying above a shop

BACKGROUND

• How to sell your home

• Buying a property at auction

• Home improvement

• Eco homes

• Step-by-step guide to buying your first property

Related Links

• Ten things you need to know about... buy-to-let

- Think about practicalities. Does the property pass the pint of milk test? In other words, are there local shops to pick up a pint of milk and a paper within 10 minutes’ walk?

- It only makes sense to purchase a property close to your own home if you know the area very well and if you intend to manage your let yourself. Otherwise, look further afield, and get to know local lettings agents – they are a great source of information on the types of properties in demand.

- Be very wary of new-build flats in city centres: in many places there is an oversupply of identikit modern apartments which are difficult to rent out.

- Property hotspots are difficult to find, but prices are likely to rise more rapidly in areas where transport links are being improved and where new employment opportunities are being created.

- In order for a buy-to-let investment to be successful, it is important that the figures ‘stack up’. In other words, you should aim to put down a deposit of no less than 15 per cent of the property’s value, and your rent should be at least 125 per cent of your monthly mortgage interest payments.

- Shop around for your mortgage. Consult a specialist buy-to-let broker, they usually have exclusive deals which are not available direct from lenders. When choosing a loan, don’t just compare rates: fees on buy-to-loans can be very high. Steer clear of deals that come with compulsory insurance policies attached: these are rarely good value.

- Be aware of your rights and responsibilities as a landlord. Because these are constantly in flux, it is worth joining a landlords’ association in order to keep up with regulatory changes.

- If you are renting your property furnished, furnishings must comply with fire and safety regulations. Gas appliances must be checked by a qualified CORGI professional, electrical appliances should be regularly checked by an electrical engineer.