Should you consider investing in a new buy-to-let property in the current market?

Tough new regulations and tax changes have led to a degree of unpopularity of the sector with investors. We have witnessed a major sell-off, with small landlords quitting the market to the tune of an estimated 4000 properties a month. But if you are a cash buyer, and you can hold your nerve, it could now be a good time to buy.

There is plenty of demand out there for rental property and rental levels are being sustained in most parts of the country. So where to start looking? New research looking at the best places to invest in buy-to-let property based on rental yields, shows that Scotland is currently leading the field, with rental returns in Glasgow lookimg positive. The next best three places with good returns are in Midlothian, East Ayshire and West Dunbartonshire. If you are thinking of taking the plunge, it always pays to do your homework

Properties can be managed from any area

The days of landlords needing to live close by to their rentals are over. With PropTech, such as our PlanetRent app, making it far easier to manage your properties remotely. We have connected with partners across the UK to help them manage their properties awherever they, maybe. This technology enables investors to search the market for the best returns. Don’t forget there are other factors that impact local rental markets. These include any major developments that are planned or new infrastructure in the pipeline, as well as the renter’s availability and profile in that area. If you are looking in an area with a high student population, investing in a house split into flats close to a university will probably offer better gross returns than a large family home in a high end location. Whether your property will hold its value long-term is another question and one that may be tricky to second-guess. That's why it is sensible to get professional advice from a qualified and reputable property agent.

You should also look for a good mortgage broker, if you need to borrow money, and a reliable accountant to ensure that your BTL income is as tax efficient as possible. There are also often genuine BTL bargains to be found at auction but you must make sure that you fully understand how this sector operates. Purchasers buying rental property at auction can avoid the long-drawn-out conveyancing process, as properties are sold immediately the hammer falls, with completion 28 days later. But buyers must do their own due diligence. They also need to make financial arrangements in advance. A deposit of at least 10% of the purchase price, plus an auctioneer's fee, must be ready for payment when the contracts are signed and they must have access to the remaining balance within those 28 days. Don't forget, there is more to buying property this way than simply turning up and making a bid.