Buy to let is an increasingly popular venture, especially in Cambridge, with its consistent supply of students and professionals wanting city centre properties.
It can prove a lucrative investment, but there are also pitfalls to avoid and factors to consider before taking the plunge. Christopher Toynbee is the owner and founder of CTP Property, a boutique property company specialising in residential property management.
He bought his first property in 2007 – a cottage in need of some love and attention, in Swavesey – and is now the owner of an extensive portfolio of residential property in the area.
WHERE TO START?
“The first question to ask is why you’re buying – is it just a numbers game, or is it with a view to having you or a family member move into it at a later date? The house style will di er depending on what you want out of it,” says Christopher. With interest rates at a historic low and stock markets volatile, bricks and mortar is once again becoming an attractive alternative for those wanting to reap a decent return on any extra cash. “It’s defi nitely better than putting money in the bank,” Christopher agrees. “The cash-on-cash return, the money that you get back, can be into double digits. There’s nothing wrong with getting into it to make money: it doesn’t mean your interests are di erently aligned to tenants’. The best tenant for a landlord is someone who stays for a long time and pays consistently, and the best way to attract that ideal tenant is to provide quality accommodation. The days are gone now that you could get away with a poor quality house and still attract tenants, and quite rightly so.”
WHAT TO LOOK FOR IN A PROPERTY
“Location is definitely key, and knowing the kind of tenant you’re aiming for,” advises Christopher. “If you’re buying for students you don’t want somewhere that’s too far out, for example.” The layout is a major factor and will a ffect, almost more than anything, what kind of tenant the property appeals to. For example, says Christopher, a downstairs reception room which has been turned into a bedroom may be preferable for students, but a family will most likely want the extra living space. Likewise, “families wouldn’t want a downstairs bathroom o the kitchen, but students don’t mind that. So be sure of what kind of tenant you’re looking for, and what they want.”
He continues: “Also look for houses you can add value to, through refurbishment, an extension or going up into the loft. A rundown house in a good area can be a really great opportunity.” He concludes: “Cambridge is always going to be a strong place to buy and an easy place to let because of the demand from students, professionals and families to live in the centre.”
www.ctpproperty.co.uk
