Should you be investing in the place in which you yourself live, or should you be investing in trying to make a profit from renting?
First and foremost, the venture that is renting out is one that you need to invest a lot of time into. To become a landlord you need to be willing to spend a lot of time ensuring that the premises you are letting out is as it should be in regards to legal matters, that everything is financially in order and that you are tending to the needs of those that you are renting to. So, if you are not willing to invest time into the venture, especially if you have to work it around your profession, so that it cuts into your home life then maybe buying-to-let or renting out in general is not for you. However, there are ways to enter the game of renting out without allowing for it to cut into your time too heavily. You can play the game in a less traditional sense by becoming what is know as a part time landlord: in doing so you would still be a landlord but the workload would not be as extensive as it would if you were a ‘full time’ one; you would not have to be bogged down in the heavy and demanding life of a landlord but would still be able to reap renting profits. By only renting out one premises, for instance, whether it be one that your buy for this specific job or one that you already own, you need merely hand the keys over to potential renters, sit back, and see an instant and extra boost in your income.
A similar type of tactic could be deployed if you had a holiday home that you could rent out; if you think that your motorhome or campervan could be in high demand then why not make it available for motorhome hire? Now, this may be a hard thing to do, at first, due to what the place means to you and your family. It means a holiday, it means a place for you and your family to avoid and get away from the everyday hustle and bustle of life, and you don’t want anybody else experiencing that. However, when you really think about it, is it a wise move, financially, to allow for your holiday home to sit redundant for prolonged periods of the year? What with the fees that are needed to keep your getaway home in a specific plot of land, plus any work that may need doing on it that is induced by a lack of activity, it can be an overall costly venture; by making it available for others to hire you are instantly making that money back. Also, is it wise to allow for it sit untended to during the time that you don’t use it yourself? It goes without saying that if a place is left untended it is more prone to attacks from external forces such as thieves. So, seemingly, renting out a motorhome, or a home of the like, is a way in which to blend the essences of buy-to-live and buy-to-rent in a way in which you are benefiting in regards to both.
However, investing in a second property in order to rent it out, whatever type of property it is, isn’t always as easy as simply handing over the keys and raking the renting cash in. For instance, investing in a property may bring with it a host of headaches such as finding the perfect place to plant your flag; making sure that all work that needs doing on it, to make it both appealing and legal, is done; and sorting out all the legal necessities, such as the specific mortgages and insurances needed. When it comes to the former, you should seek as much information on the matter as possible if you really have no clue as to what area you want to rent in. The Telegraph, for instance, have in the past documented the 10 best postcodes for buy-to-let ventures in Britain to help out anybody who does in fact wish to rent in this part of the world. But it takes more than just a bit of advice when it comes to this type of venture, it does take some geographical and housing trend knowledge too. For those who do wish to rent in Britain, for example, should now be considering the impact that the HS2 train line, which is expected to be active within 10 years, is going to have on the housing market. It is going to make Birmingham accessible to those in London within just one hour — this could mean that people who works in London, which is where a lot of professions are based, could flock to Birmingham in search of a new home as their commute to work would not be too long. It is these sorts of trends that a potential landlord must do their homework in; if you are not willing to do so, then being a landlord might not be for you. If this is the case, then why not save your money, time and efforts and put them to better use — like bettering the place that you yourself live instead? That way you can have a clear divide between your work life and your home life, the divide being the moment you step foot in your door after a long day at work.
The answer to the question as to whether or not it is better to invest your money in your own living environment or if is in fact better to invest it in renting opportunities can only really be answered by you. If you have both the time and patience to further your reach as a landlord, and most importantly want to do so, then go for it. But if you don’t and you’d rather focus on your own home and having your own creature comforts surround you, then undoubtedly you should not waste your money or efforts on expanding your empire and should instead focus them on bettering your own personal castle. However high you choose to go on the buy-to-let ladder, and at what point you decide to get off of it, is completely down to you. So, the answering of this question is seemingly dependant on what an individual values most in their life: the bettering of their own little castle or the spreading of their empire.