As you start working you always trying to find a way to save every bit you can. Once you have enough saved up you try investing it to get more out of it. So I recently decided to buy my first buy-to-let property. With relatively low upfront costs and easy rental income it seemed as a relatively good idea but did I really know what I was in for? This is my first buy-to-let experience.
Before buying my first buy-to-let property I had to do a lot of research. It can be the ideal investment if managed properly but can easily cause more harm than good. So looking for the ideal property was the biggest problem at first. I had to find something that was in my budget of course as well a solid property. This is not as easy as it sounds as I found out that I still have to consider the bond repayments, transfer costs, conveyance fees, levies, insurance, rates and taxes and the list just goes on. I began to doubt myself and start to convince myself about how bad things could turn out.
It took me a while to get out of that hole and start considering investing again. My bank balance started to grow and I was approached to buy a property from a relative that was moving away. I went over to have a look and discuss the possibilities of buying. It was a simple two bedroom apartment that belonged to a widow who was now moving in with her son. The location seemed perfect as it was near a school and grocery stores. The house itself seemed to be in order as she just renovated the house three years ago so nothing some paint and a few screws couldn’t fix.
So I put my figures together spoke to my bank manager and decided to make an offer. To my luck she accepted my offer and I paid the deposit soon thereafter. This was well within my budget as I still had enough to cover the repairs.
She moved out later that month and I had the repair man take care of the rest. With the house looking good I then started interviewing possible tenants. I calculated an approximate fee for the rental and decided to target young couples and families. Some complained about the price, others about the size of the house and some just did not like it at all. I guess one man’s trash is another man’s treasure. I didn’t give up home I still continued to try and find the right fit. The last thing I wanted was to have someone renting that wasn’t happy or even worse not pay rent.
Finally after weeks of interviews I finally found a couple who were expecting their first. They loved the neighbourhood as well as the house but unfortunately my rental fee was too high. I really liked them and they seemed like decent people. So I decided to go back and review my rental fee. Was it really that high? Maybe I should just wait for someone else to come around. But to be honest the place has be lying empty for so long and the longer I leave it that way the more chance I have of someone breaking in.
I went back and did all my calculations again and tried to find a better way. So eventually I finally decided that I will rent it to the couple at a slightly lower fee then I initially requested. I wasn’t going to get as much out of it that I initially anticipated but I was still making a profit and it still seemed like a good investment. They accepted and moved in shortly thereafter. It has been four months since they’ve moved in and they now have an adorable baby girl. The house is perfect for them. I receive my rental on time every month and have no complaints.
Always remember to start small as it can take some time before you actually see a return in your investment. It’s never easy doing anything big the first time. With something like this there’s always a chance of failure but there’s also a chance of success and you will never know until you give it a chance.