Bricks and mortar: Buy-to-let is a popular option for those who would rather grow their wealth through property than shares or cash

For many buy-to-let looks an attractive income investment at a time of low rates and stock market volatility.

But if you are considering investing in property — or improving your returns on a buy-to-let you already own — it’s important to do things right.

Read This is Money’s top ten buy-to-let tips — the essential guide to successful property investing.

Buy-to-let may not be quite the hot property of the boom years, but it has seen a resurgence in recent times.

As an income investment for those with enough money to raise a big deposit buy-to-let looks attractive, especially compared to low savings rates and stock market volatility.

Meanwhile, the property market bouncing back has encouraged more investors to snap up property in the hope of its value rising.

Mortgage rates at record lows are helping buy-to-let investors make deals stack up — you could fix a mortgage for five years at just over 3 per cent at the biggest deposit level.

But beware low rates. One day they must rise and you need to know your investment can stand that test.

Recent history provides an important lesson in that. Many investors who bought in the boom years before 2007 struggled as mortgage rates rose. A sizeable number were thrown a lifeline when the base rate was slashed to 0.5 per cent.

Rates have stuck there since 2008, but remember they will rise again.

Despite the potential for costs to rise, more tenants in the market, rising rents and improving mortgage deals have tempted investors once more.

If you are planning on investing, or just want to know more, we tell you the ten essential things to consider for a successful buy-to-let investment.

Like any investment, buy-to-let comes with no guarantees, but for those who have more faith in bricks and mortar than stocks and shares below are This is Money’s top ten tips.

BUY-TO-LET MORTGAGE RATES TUMBLE, BUT BEWARE THE BIG FEES

Buy-to-let rates have followed residential deals down, but remain slightly more expensive than mortgages offered to owner occupiers.

Landlords need to beware fees, which can substantially push up the cost of a mortgage, especially if they are only fixing or tracking for a short deal period.

The biggest fees are typically those charged as a percentage of the loan but even flat fees can run to £2,000. The good news is that you should be able to claim these back against tax, speak to an accountant if you need help with this.

The lowest two-year fixed rate for landlords is 2.34 per cent from Virgin Money, this requires a £1,995 fee but comes with £500 cashback

The lowest five-year fix is also from Virgin Money at 3.19 per cent. It also has a £1,995 fee and £500 cashback.

Both these loans require a 40 per cent deposit.

Typically buy-to-let borrowers must put down a deposit of at least 25 per cent. The best two year fix at this level is from HSBC or Abbey for Intermediaries at 2.79 per cent, with fees of £1,999 or £1,995, respectively.

The top five-year fix at that level comes from Legal & General Mortgage Club at 3.79 per cent with a £1,495 fee.

1. Research the market

If you are new to buy-to-let, what do you know about the market? Do you know the risks, as well as the benefits.

Make sure buy-to-let is the investment you want. Your money might be able to perform better elsewhere.

In recent years a high-rate savings account would beat most investments. Now rates are lower, but investing in buy-to-let means tying up capital in a property that may fall in value.

This compares to the possibility of a 5% annual return from an income-based investment fund, or 3 per cent on a   fixed rate savings account .

Remember that the return from an investment in funds, shares or an investment trust through an Isa will see you escape tax on income and get capital growth tax free. You will also have the ability to sell up quickly if you want.

The flipside is that you cannot buy an unloved investment fund and set about renovating it and adding value yourself.

Investing in buy-to-let involves committing tens of thousands of pounds to a property and typically taking out a mortgage. When house prices rise, this means it is possible to make big leveraged gains above your mortgage debt, but when they fall your deposit gets hit and the mortgage stays the same.

Property investing has paid off handsomely for many people, both in terms of income and capital gains but it is essential that you go into it with your eyes wide open, acknowledging the potential advantages and disadvantages.

If you know someone who has invested in buy-to-let or let a property before, ask them about their experiences — warts and all.

The more knowledge you have and the more research you do, the better the chance of your investment paying off.

Rising demand: Levels of home ownership are falling, particularly among young people, meaning more renters

2. Choose a promising area

Promising does not mean most expensive or cheapest. Promising means a place where people would like to live and this can be for a variety of reasons.

Where in your town has a special appeal? If you are in a commuter belt, where has good transport? Where are the good schools for young families? Where do the students want to live?

You need to match the kind of property you can afford and want to buy with locations that people who would want to live in those homes would choose.

These questions might sound overly simplistic, but they are probably the most important aspect of a successful buy-to-let investment

In most cases people tend to invest in property close to where they live. On the plus side, they are likely to know this market better than anywhere else and can spot the kind of property and location that will do well. They also have a much better chance of keeping tabs on the property.

Yet it is also worth bearing in mind that if you are a homeowner then you are already exposed to property where you live — and looking for a different type of home in a different area might be a good move.

3. Do the maths