Which buy-to-let breed are you?

Are you someone who short-sells shares in the morning and spread-bets on the oil price in the afternoon? Or are you a slow, steady saver with a perfectly balanced portfolio? Take our 10-step financial test to discover which kind of investment property would suit you best

Please complete this question. You must select 1 answer(s).

Is this your first investment property?

Eek, can you tell already?

No, this will be my second. It’s like being a parent, right?

I have keys to properties across Britain

Fear not, I’ve done this many times

Please complete this question. You must select 1 answer(s).

For how long do you plan on owning the property?

Like a good bottle of red, about five years

Longer than my first marriage — at least 10 years

Along with bad career advice, I want to pass the property on to my children

I don’t like to sit still. No more than two years

Please complete this question. You must select 1 answer(s).

Risk is...

Sorry, run that by me again?

Dangerous

A boring board game

The whole point of life

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Which of these categories describes you best?

First-timer/second-stepper: I can’t yet afford my forever home, and this investment gives me a leg-up

Grandlord: I’m retired and want to add to my pension

Forward planner: I want to create a nest egg for my children and/or build up extra income to maintain my lifestyle in retirement

Empire builder: want to see the size of my portfolio?

Please complete this question. You must select 1 answer(s).

What is your budget?

Less than £500,000

£500,000-£750,000

More than £1.5m

If you have to ask...

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Is there any chance you may need to sell suddenly?

Don’t tell the bank, but if my circumstances change, I’ll be calling the estate agent

It’s unlikely — but, as I said at my second wedding, never say never

No, I can afford to tie this money up

This is small change. Ask me another question

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What is the most important investment objective for you?

I want to preserve my capital and see it grow

I want to maximise my monthly income — it’ll be nice to have a bit extra

I want a balance between income and capital growth

I want to do up and sell on at a profit — quickly

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Which areas will you consider?

The fringes, where I’ve spent most of my life — somewhere attractive that still has room for gentrification

I’ll only buy in an area I know, not far from my home

If there’s a strong market, I’ll look further afield

Wherever the numbers stack up — just tell me where

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What kind of rental income stream are you looking for?

Minimal void periods, please! The budget is tight

For long-term certainty, I’d like tenants on a long lease

A consistent income, but I can stomach the odd void

For a higher rent, I’m willing to risk longer gaps

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What type of tenant are you comfortable with?

Only professional couples and singles need apply

I would accept a lower rent from a tenant I liked

As long as they pay the rent on time, I don’t care

I’ll take sharers if I make more money

Please complete all of the questions.

How did you do?

Dear Prudence

Description of image Welcome to the world of buy-to-let. Yes, it is a big step, but keep up your due diligence and you could net yourself a solid reward. We know you cannot afford to lose your not insubstantial savings, so search in central London, where the rental yield will be low, but capital preservation and growth is far higher. If your budget doesn’t stretch beyond £500,000, look in established areas such as Cambridge or Solihull, where regeneration or new infrastructure will push up prices.

Steady Eddie

Description of image You’re a risk-averse investor seeking a hassle-free income stream. Look in London’s zones 2, 3 and even 4 to maximise your yield. Consider well-kept ex-local-authority flats or developments built 10-20 years ago: they will cost less than period equivalents, but tenants will pay similar rents — boosting your return. Outside the capital, look for properties within a mile of the centre of a city such as Liverpool or Leeds, near transport links. Capital growth will be slower, but yields will be higher.

Balanced Bella

Description of image You’re a textbook buy-to-letter who requires monthly income with steady capital growth as the cherry on top. Buy in the heart of regenerating city centres such as Manchester or Birmingham to achieve healthy gross yields above 6% and 2%-4% capital growth.

Fearless Felix

Description of image I bet you always won at Monopoly, didn’t you? Just make sure your appetite for risk is matched by your skill. To truly make a quick return, you need to know your stuff. Search for properties where significant value can be added through redevelopment and/or gaining planning consent.

Answers

Is this your first investment property?

For how long do you plan on owning the property?

Risk is...

Which of these categories describes you best?

What is your budget?

Is there any chance you may need to sell suddenly?

What is the most important investment objective for you?

Which areas will you consider?

What kind of rental income stream are you looking for?

What type of tenant are you comfortable with?