Buy to Let Mortgages
In the same way that shares can provide both income (dividends) and capital appreciation,
investment properties can provide income by way of rental yield and capital appreciation
(value of house) increases. However just like stocks & shares, the value of your
property can go down as well as up and a rental void (unable to find a tenant) can
put a huge strain on cash flow.
Many people have invested in the property market over recent years perhaps encouraged
by increasing house prices and what may have been seen as low interest rates on
specifically designed buy-to-let mortgages.
So if you decide to invest in the property market, we believe it is important that
you do your homework.
We consider it vital that you research the local rental market to investigate the
types of properties that are in demand, the best location for your rental property
and how much rent you are likely to get as this will affect how much you can borrow
on a buy to let mortgage.
- A buy-to-let property has become a popular way to invest money
- We believe it’s important to do your homework before buying a property to rent out
- We consider it vital that you research the local rental market and treat it as a
business venture
- Plan for gaps and anticipate problems
- Consider the tax implications
- Many lenders offer buy-to-let mortgages
We believe another golden rule is to treat it as a business venture and accurate
budgeting is an essential part of the process. You should plan for any potential
gaps in letting the property and try to anticipate likely problem areas.
Also factored into your budgeting should be the tax implications of your potential
investment.
If you are thinking about investing in the property market for the first time or
if you would like to build a buy-to-let portfolio.