Lettings
There’s a lot of stories you can find where real estate investing is the key to building wealth. You’ve probably watched videos, Youtube videos, and probably heard different success stories.
For a first-time investor, buying your buy-to-let property is a huge step towards passive income generation. However, it is important to ensure that you are ready for your first buy-to-let property.
When it comes to investing, there is no green light that will flash in your head to tell you that you're ready. But there are various signs that will indicate that you are ready to invest. How do you know that you are ready to buy your first buy-to-let property?
1. You’re Are Ready for Your First Buy-To-Let Property Buy-To-Let Property in London when You have a stable job
While you’ll hear people that would tell you to jump into real estate while you’re young, you still need to have a stable job under your belt.
One of the few reasons is that you would want to buy your first rental property when you have enough money coming in to let you cover the cost of a buy-to-let property especially when worst scenarios happen. If you can’t let the property float on your own for at least 6 months, it’s a sign that you are not yet ready. And of course, you need a stable and steady income to do this.
Moreover, a strong employment history will prove that you have a steady income which lenders will want to look into.
2. You’re Are Ready for Your First Buy-To-Let Property Buy-To-Let Property in London when You have stable finances
Having stable finance is one of the signs that should be considered when thinking of buying your first buy-to-let property. It is important that you don’t have a bad debt because having a bad debt will limit your power to buy your first buy-to-let property from a financing perspective. Moreover, when you have bad debt, it eats away at your income and weakens your financial reputation.
It is also important that you have an emergency fund for at least 6 months. This gives you a degree of financial stability.
You should also have enough money for a higher percentage down payment. Having such allows you to have a better mortgage rate. And the down payment should not be taken from your emergency fund.
3. You’re Are Ready for Your First Buy-To-Let Property Buy-To-Let Property in London when you know your goals
Know if buy-to-let property investment is the right for you. Real estate investing can be a huge endeavor. Thus, it is important that you have specific goals and you have a vision of where you are going.
Buy-to-let property investing is not a fast lane to financial freedom. It can take years or even decades to get the results that you want. You should have enough patience and enough time in order to get where you want to be.
Bluestone Properties
Bluestone Properties is an estate agency and letting agency based in South West London.
We are committed to helping our clients streamline the property management process. If you would like to discuss the lettings market in south London, feel free to contact Bluestone Properties.
For more information about our property management services, contact us today or call us on 0208 355 3405
