There have been many casualties with buy-to-let investors making poor decisions when investing in property, sometimes the result has been bankruptcy.  Our short series of articles about investing in buy-to-let property is intended to offer some helpful information to those considering this type of investment.

After this 1st introduction we will be covering the following topics for interested property buyers seeking to become landlords of the future:

2 – Selecting a property

This will cover how you should consider choosing a property, covering aspects from location through to the type of property to consider purchasing.

3- Financing

An overview of buy-to-let financing, some of the key metrics banks look for, and how to better prepare yourself.

4 – Managing the property and the tenants

This is fundamental, you cannot just buy a property and watch the cash come in, it only makes a profit if you manage the property correctly, we give some helpful insights on this.

5 – Leveraging for investment growth

After successfully managing your first property you would like some more? Here we will suggest methods on how to increase your portfolio successfully.

6 – Diversifying into commercial property

For some they see commercial property as much less hassle, “easy money”, the reality is that it is higher risk, but equally if you have a good strategy it can prove very profitable.

7 – A summary of pitfalls to be aware of

Finally we will be summarising the pitfalls, is not that we want to be negative, but every investor needs to have the risks in the back of their mind at all times when making investment decisions, in that way hopefully the most profitable decisions can be made.

Over the last 10 years there has been a huge increase in the number of private buy-to-let landlords who have seen property investment as a key part of their “wealth management strategy”.  For those who invested in the late 1990s it has proven to be an excellent investment, but what about those who invested in the last 3 years, most are sitting on a loss.

Clearly there will always be peaks and troughs in property values, some will get their timing right, others will not.  And despite what many will think, it is not always clear when is a good time to buy, or sell, even some experienced investors get their timing wrong.

If you are a property investor who only invests for the short to medium term then you have the greatest exposure to losses, and likewise gains, both of which can be spectacular.  Some of these property buyers are now starting to view 2009 / 2010 as the time to start investing again, getting ready for the next lift in property prices, but are they right?

Our research has found that most analysts are talking of more modest growth over the next 5 to 10 years, we have yet to find any credible economist forecasting a UK property price boom in the next 5 to 10 years, but economies can change, and with it the forecasts of economists!

The key message for buy-to-let investors is this, if you want to reduce risk and realise long-term profits then invest for the long term.  Select your property wisely, in a location where tenants will be easier to find, and you will minimise rental voids, maximising the future profitability of your property.

Our own opinion at the house4sale blog is think long term with buy-to-let investments, also do not place all of your financial resources into buy-to-let, diversify your investments to mitigate risk.

For those who want to start investing in property, and also the novice landlords, we will be publishing a series of posts about how to be successful with buy-to-let properties, an essential guide for anyone who wants to build a property portfolio.