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    Preparing Finances 

    For all investors, the first step in purchasing a property is to have all the required finances set out. This includes setting budgets, saving the correct amount for a deposit, looking into mortgage options and making sure there is money for any legal costs and fees.

    A buy-to-let mortgage requires a 25% deposit which is significantly higher than the 5-15% deposit required from owner-occupier mortgages. So, knowing what type of property to invest in and how much deposit you will need to start is important.

    Suppose a person is a first-time buyer with a £25,000 cash deposit available for a property that costs £250,000. This deposit amounts to 10% of the property value. In this case, the person could consider investing the £25,000 in a buy-to-let mortgage for a property that costs £100,000, which requires a 25% deposit. 

    Researching the Market

    Researching the market is one of the main parts of investing as this will determine whether investors will benefit from capital appreciation. First-time buyers should look deeply into locations and neighbourhoods and what each area offers for an investment. Investors need to analyse if the property will produce the profit margin required.

    Researching the area and the current market will provide an excellent overview of possible rental rates. It is important to look at the upcoming hotspots to get the chance to grab a property at a lower price. This could be beneficial in the long term as property values increase due to elevated levels of rental demand. 

    In Leeds, the average house price in May 2023 was £237,043. According to Land Registry, that is a 6.1% increase from the same time in 2022. Therefore, property investors in Leeds will have seen considerable capital appreciation on their property. 

    Viewing Properties

    When looking for a buy-to-let property, it is important to consider the different types of properties available that would attract tenants. Factors to consider include the number of bedrooms, accommodation type, parking availability, and projected rental income. All these factors will influence the demand for the property and ultimately affect the ROI that investors can achieve. It is important to consider the location and the local amenities that potential buyers desire, to make the property more appealing to the target audience.  Take note of what people want to buy and the features they would like in or around their homes to make the property stand out.

    Speaking to Professionals 

    Finding the right professionals is one of the most crucial steps in ensuring the investment goes through correctly and quickly. Industry professionals and investment consultants will be able to provide information to help first-time buyers decide and finalise their investment. Here at CityRise, we have a large team of experienced professionals who are always happy to help and support investors through their journey. First-time buyers may not always know where to start and we can guide them through the process. All investors should also consult with mortgage professionals to ensure they get the correct mortgage at the best rate. 

    Reserving a Property 

    The period between reserving a property and exchanging contacts is the main part of the purchasing journey. This stage is the ‘sales progression process’ and involves many parties, including solicitors, mortgage brokers, surveyors, the seller, and the buyer. At CityRise, our Aftersales team ensures a smooth journey from reserving a property to exchanging contracts. The team work tirelessly so that no unnecessary delays or issues occur. 

    Once the reservation fee is received, all the Memorandum of Sale instructions will be sent to the developer’s solicitor to create the necessary paperwork to complete the purchase. At this stage, investors should look to find a solicitor. At CityRise, we have a recommended solicitor that we suggest investors use to speed up the process. The solicitor will receive the Memorandum of Sale. Then investors will be issued the initial client care letters to sign, containing personal and property details and usually search fees.

    Exchanging Contracts

    Once the solicitor receives contracts, completes the initial checks on the buyers, and receives the search results, they can start reviewing the documents. The developer’s solicitor will respond to any questions and answer all enquiries raised by the buyer’s solicitor whilst reviewing the documents. Once all enquiries have been answered satisfactorily, the contracts will be sent to the buyer to sign and return.

    Once all the legal contracts are signed and returned, investors will transfer the deposit funds. Then they will also provide written authorisation that they are happy to exchange. It is crucial to start organising these funds or submit the mortgage application around 3-4 months before the practical completion of the development. Both solicitors will aim to get contracts exchanged quickly after authority has been provided. 

    Completing the Purchase

    Once completed, the property is now the buyers! During this stage, buyers will pay stamp duty fees, complete the registration, and obtain title deeds and documents. Finally, the property is ready and investors can start looking for tenants. Investors can also decide they want a more hands-off investment and don’t want to manage the property directly.

    Lettings & Management

    If a buyer prefers to take a hands-off approach to being a landlord, then allow CityRise to manage them. Our team of lettings professionals manage properties from start to finish. We provide secure fast occupancies with professional tenants. Furthermore, we limit potential void periods with our smooth tenancy renewal process. Our team will advertise the property to find the right tenants. Once the apartment is tenanted we will provide the tenants with high-quality, attentive, professional care. Eventually, once the tenancy finishes our team will follow aftercare protocol, ensuring the property has been properly maintained and is ready for the arrival of new tenants.

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