Old versus new Character cottage or new-build? Belvoir Lettings takes a look at what makes the best rental investment

Looking to invest in a rental property but don’t know whether to buy that run-down character cottage or the brand new estate house with its modern appliances and state-of-the art kitchen?

Whether to invest in an old or new property is one of the many tough decisions that have to be made by landlords – and it’s one that can seriously affect an annual rental return too…

“Old and new properties are both popular with buy-to-let investors,” says Craig Walker, proprietor of Belvoir Camberley. “But, as both have such different benefits and down-sides, it’s extremely important for an investor to think carefully about what would best suit them – and what would attract the most potential tenants - before signing on the dotted line.

“New builds often attract those landlords who are ‘cash-rich’ but ‘time-poor’,” continues Craig. “Often bought at a premium these properties will need little renovation or maintenance and are ready for the new tenant to move in straight away - they are often built near schools and major transport links too, so should attract plenty of tenant interest.

“However, these properties lack individual character and some landlords prefer to invest in a slice of history, even if it means putting in a lot of hard work to modernise the property before it can be marketed to let.

“These older properties can be financially effective solutions as they can often be picked up under market value, especially at auction. And, they usually command higher rental yields too. But, landlords should watch out for hidden costs – initial modernisation, on-going maintenance and rent lost while all this is carried out must be taken into consideration.

“Buying into an old or new property is a big decision which requires a lot of thought for any buy-to-let investor. Think carefully about all the costs you will incur – both obvious and hidden. Plus, speak to your local Belvoir office before investing - they will have direct knowledge of the market and will be able to recommend what’s currently renting well in the local area.”

• To find your nearest Belvoir office, visit their website at www.belvoirlettings.com