The world is expanding online: shopping, teaching, and booking can all be done without ever leaving the house. It may seem that businesses can do well on their own online without even having a physical store. While they can succeed on their own, you cannot deny that a sign of growth and expansion of an online brand is to have a physical office/store.

 

The online world does not compete against the real one; they are very much connected. Real estate, commercial spaces, and offices still have a lucrative place in society. So, are buy to lets a yay or a nay? Here are three points you need to consider:

 

What is a buy to let property and a buy to let mortgage?

 

Buy to let is when you purchase a space with the intention to rent it out to other people for a profit. Buy to let properties are diverse and can cover office spaces, stores, homes, and farms. If there is a need for it in a property market, there is most likely someone who will offer to rent that kind of space. When a buy to let is successful, you can make your money back along with a profit.

 

A buy to let mortgage is a loan that can help you purchase the property which you can slowly pay back with your rental income. Lenders will look at your personal history, but mostly they will assess the property since it is meant to be your primary source of income. They will check the neighbourhood, the foot traffic, the demand, and other similar factors that might affect the stability of your renters. Lenders prefer to buy to let properties that are commercial spaces over homes and apartments, again, because of security.

 

Who can be your target audience?

 

Your general target audience depends on the kind of space you have. If you have a residential area, then you can cater to young professionals, students, or tourists. The quick turnover of people in these kinds of scenarios is not preferred since it requires a lot of effort to keep track of payments. The benefit of the situation though is that when you cater to this kind of market, there is always a quick replacement.

 

Another option for your residential space is families or couples who want to settle down. Their staying may be a long-term commitment, and this means consistent rent payments. Unlike the former, you do not have to worry about off seasons like school breaks or poor weather. The same can be said of commercial spaces, weigh the options between short-term versus long-term businesses.

 

What location should you select?

 

You should select locations that have easy access to transportation, a variety of businesses, and foot traffic. When you have your application checked by Mortgage Wise, you can see that these factors help regardless of whether they are residential or commercial.

 

A buy to let mortgage is a gamble. When done with the right people and with the proper research it becomes less of a risk and more of a guarantee. A definite yay to those in the know.

 

Published by Zachary McGavin