An interesting idea that has appealed to a lot of first time buyers over the last few years, is the idea of buying a property that, ultimately, you intend to live in. But, rather than moving in immediately, buyers are choosing to let the property for a short period of time. This is an ideal way of putting a few extra pennies in the bank before moving into your first property, but how does it work on a practical level?
Finding a property
One difficulty is finding the right place. If you’re intending to move in after your letting period is up, it needs to be a property you’d buy anyway, but it still needs to have letting potential. You will need to furnish the property in a clean, neutral way and leave any personal quirks for when you finally do move in. Smaller, one or two bedroom properties work well for this purpose.
Short term contracts
Be clear about your plans with your tenants and consider signing a contract that is only a year or eighteen months long. You can even fix moving out dates well in advance so that you know when you can organise moving in. It’s really important that you take out a good landlords insurance policy for the term of your let – after all, it’s your property that you’re protecting from damages!
One of the reasons that a short term let appeals to first time buyers is that they often have alternative accommodation available. Living with parents or for those in the forces or hospitality, living at work, are ideal arrangements and can help you put a few extra pennies in your pocket before you move in to your property for good.
Buying a property with the intention to live in it is massively exciting, but an opportunity to generate some income from is well worth grasping. Make sure your property is suited to letting and you will be able to find the right, reliable tenants, but don’t be put off becoming a landlord just for a year or so – if you’re looking to buy a property anyway, it might be a good way of making back a few thousand on the asking price!