Top Ten Buy-to-Let Tips Revealed Liverpool

A good agent and making sure rental yields are a minumum of 12 per cent are top tips

If you are considering buying an investment property it can be difficult knowing what to prioritise when it comes to making the right choice for your buy-to-let.

With this in mind, property millionaire Ajay Ahuja is sharing his expertise in the form of ten golden rules buy-to-let investors should think about.

Ten golden rules for a successful buy-to-let investment

1 - Do your research
Before buying investors should ask themselves if buying to let is right for them.

Questions investors should ask are: "Do you have the determination, perseverance and self discipline for a long-term project? Can you budget well, can you deal with people from a range of different backgrounds, do you really like property? Are you responsible?"

Mr Ahuja added: "Remember that buying a property to let is not just about your needs, by renting a property to others you are affecting their lives and have a role of responsibility."

2 - Raise the initial investment
"Most people think that to become a professional landlord you need mountains of cash, this is just not true, I started with a mere £500," Mr Ahuja explained.

"The key is a good knowledge and understanding of the financial products available to you. Of course it is ideal if you do have some personal funds to invest but if not consider the 100 per cent loan-to-value residential mortgage."

3 - Find the right buy-to-let mortgage provider
With so many buy-to-let mortgage products available, how do investors know the right one for them?

"The traditional buy to let mortgage requires 15-25 per cent of the purchase price as a deposit, the larger your initial investment the more you are able to borrow," Mr Ahuja said.

"Do your research as you would for a standard mortgage by comparing interest rates, repayment structures, fees and penalties etc. It is often advisable to approach a provider with whom you have a good financial history or a buy-to-let mortgage specialist."

4 - Find the right property
"I see many people buying in 'up and coming' areas only to be disappointed by the rental returns on their investment," said Mr Ahuja.

"My property choices are based in price, price, price. Getting to know a local market will give you the knowledge to spot if a property is a bargain or not.

"Speak to local agents and establish the rental value of different property types so if you see a cheap property which could command the going rental rate for the area then you know it's a bargain."

5 - Look to achieve 12 per cent rental return
"Some landlords are happy to receive eight, nine, or ten per cent rental return however I feel that a 12 per cent return is achievable and that is my benchmark," Mr Ahuja explained.

"I use the simple 'rule of 12' when deciding if a property is worth investing in; take the purchase price, divide by 100 thus giving the monthly rental figure that needs to be ...