Buy to Let or Buy to Regret?

Property owners across the country are nervous. The market is slow, and there are many more properties available for rent than there are available tenants! The headlines scream, "Buy to Let becomes Buy to Regret!"

Is there a way to reduce the risk, or should you abandon the B2L dream and stick to buying lotto tickets at the corner café?

Here are three strategies for hedging your bets:

1. AREA: Choose the area in which you want to invest and then conduct your research. Put on your Sherlock Holmes coat and learn everything you can about the area. What kind of development plans are in place for the area? Is it easy to get to public transportation? How close are shops, schools, parks, and hospitals? What kind of people live in the neighborhood? Families, students, or retired people? What has happened to rental demand in the last few years?

2. EXIT STRATEGY: Assume you buy the property and NO ONE WANTS TO RENT IT. AARGH!! This is why you require an exit strategy. Can you resell the property for a profit after a few minor changes? Could it function as an Airbnb? What about subdividing the property and bringing in multiple tenants? You must consider all possibilities; don’t become fixated on a single strategy; have a few options on the table so that you can roll with reality rather than being crushed by it.

3. LETTING AGENT: Sure, you can advertise the property for free on Facebook, Instagram, and Gumtree! But then you have to show potential tenants around, run credit checks, and risk being scammed. Alternatively, you can work with a letting agent who is familiar with the area, understands the market, and knows where to look. Yes, you must pay for their services, but some services are worth their weight in gold! Don't forget that a good letting agent can be an important member of your Sherlock Holmes Detective Club; who knows more about what is REALLY going on in your preferred area than someone who is on the ground every.single.day?

With some forethought, your B2L dream can become a reality. After all, there are two types of pain in life: the pain of not being disciplined enough to do the research and the pain of regret.