07 February 2011
Building an asset portfolio, generating additional income in preparation for retirement, saving tax… there are so many good reasons for buying property to let.
But how do you maximise your chances of making the best investment? Location, size and features: these are the essentials considerations you should be weighing up before you buy.
Where to buy?
The profitability of your investment depends largely
on the location of the property itself…
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Invest in a region you already know. That way, it will be easier for you to identify those areas where prices aren’t too high, but are likely to rise quickly. You can therefore isolate areas that offer the greatest potential for capital growth and be able to predict the long-term profitability of your investment more accurately.
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Adapt to changes in tenant demand: mid-size cities, like Toulouse, Nantes and Montpellier, are becoming increasingly sought-after, for example. The increase in single-parent families is driving higher demand for 2-room apartments in city centres and inner suburbs.
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Make several visits to the area you’re interested in investing in. This way, you’ll be able to see where the schools, public transport links, local services, supermarkets, doctors, etc. are. All these amenities contribute very significantly to the appeal of your property.
Bouygues Immobilier understands the needs of everyday life
We understand that the location of our homes and issues like easy access to nearby shops are priority considerations when selecting sites for new home developments. |
What size of property should you be looking for?
Although proportionally more expensive to buy, they offer a better rental yield, because in terms of floor area in m
2, a studio generates a higher rent than a 5-room apartment.
On the other hand, it’s important to appreciate that studio tenants are likely to move home more often than tenants of 5-room apartments. This means additional costs for you: more frequent redecoration and repairs, the possibility of periods of non-occupancy, the costs involved in reletting your property via an agent, etc.
To make the best-possible choice, take careful account of the demographics for the area you want to invest in:
- in areas with high concentrations of students and young professionals, you should opt for smaller properties
- in more residential and family areas, consider mid-size or even large properties
Which features should you be looking for?
Most tenants prefer new homes, because they offer so many benefits:
- their features are seen as more desirable (parking, terraces, landscaped areas, etc.)
- household bills are lower (thanks to better insulation and more economical heating systems)
- they avoid the need for expensive maintenance work (refurbishment, upgrading to new standards, etc.). You can therefore rent your property immediately after purchase and start generating income straight away
Homes the way you want them
Bouygues Immobilier offers you the opportunity to choose the finishes of the home you buy, from floor and wall coverings to bathrooms (view the customer centre video).
You should also consider adapting these features to suit the type of home you buy. For example, fitting a shower room rather than a bathroom in a studio apartment. Similarly, it’s not necessarily essential to fit wood flooring in a family home with a garden.
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So for successful buy-to-let investment, it’s important to consider all 3 of these criteria - location, size and features - simultaneously. For example, in an area with a high student population, a simple, functional studio apartment is likely to let more easily than a high-rent 5-room…
