A buy-to-let property is very different to simply owning your own home. When buying a property in order to rent it out to tenants, it becomes an investment and should be carefully considered. Different sized properties will attract different people, and cost different amounts to you as the landlord. There are benefits and advantages to each type of letting property, in this blog we are going to look at the ‘family home’.
The Benefits of Letting A Family Home.
- Families settle
Unlike millennials in trendy single apartments, families are often looking for a property to rent for a long duration. They want a place where they can raise their children, so once they find a house, it is unlikely that they will have a desire to move in the near future. It can be unsettling to children to constantly be moved from home to home, and parents understand this. Therefore, you can be ensured that you will have a pretty consistent tenancy.
- Family tenants are respectful.
Families will be keen to protect their credit record hence they will be sure to pay bills on time without fuss. They will also want to keep any deposit that they put down on the property, so they will be respectful of the home and take care of it as if it were their own.
- Property price growth over time.
A family home is a long-term investment that is likely to grown in value over time due to positive property price growth. Therefore, if you decide to sell it eventually it could be worth more, so you not only make money through renting to tenants, but you can make money on the house itself.
- Higher Rent
A family home will obviously demand a higher rent so your income will be much higher than rent from an apartment.
The Negatives of Letting A Family Home.
- Taxes, fees, and insurance
Council taxes, stamp duty and the cost of insurance will all be things you have to pay. These costs will be larger for a family house than they would be for an apartment.
- Concentration of Assets
You will have a much greater concentration of assets in a house than an apartment because it costs much more to buy. It’s not always affordable for landlords to buy family homes and taking out a mortgage to do so is another cost. Whilst there is potential for property price growth over time, there is also potential for property price downfall.
When choosing whether you should buy a family home to let, make sure you consider both the advantages and disadvantages. It can be a great investment if you thoroughly plan and prepare for every aspect of the buying and letting process!
To buy or rent a property today, visit Thomas H Wood estate agents, or contact us for any questions you may have. https://www.thomashwood.com