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.
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A buy-to-let property has become a popular way to invest money*
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We believe it’s important to do your homework before buying a property to rent
out
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We consider it vital that you research the local rental market and treat it as
a business venture
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Plan for gaps and anticipate problems
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Consider the tax implications
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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.
There are a range of lenders offering competitive buy-to-let mortgages,
many of which are only available though mortgage advisers.
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.
*Your Mortgage magazine June 2005 page 43