Buy-to-Let property remains to be a popular long term investment.
Buy-to-Let Properties can seem easier to understand compared to stocks and shares and we’ve created a list that should help you with your first buy-to-let investment.
Make sure that you familiarise yourself with any pitfalls along with the benefits. It can be handy to speak to someone who has already experienced buy-to-let along with reading any guides on the subject.
It is necessary to consider location when choosing buy-to-let property. Depending on the target market, there are factors to take into consideration about the location of any schools, links of transport, night life and so forth.
There are websites available for you to research any competition you may be facing.
It is easy to get drawn into the excitement of house hunting, however, it is advised to take the initial step of making calculations and taking into the account the cost of the house and the likely rental yield. Many buy-to-let lenders will frequently ask for a deposit from 15% up to 30% and the rental income to cover 125% of total mortgage repayments.
Take your time to shop around as this is an investment property. You can take a trip to your local bank for comparisions but there is a vairety of finance options that are available for the purchase of buy-to-let properties in current times, as well as brokers who can help you get the best deal.
Ensure you know your limits and aren’t over ambitious with your investment. There are a number of people who have sourced millions from their property, although experts are explaining that the days of double digit price rises could essentially be over.
There are a number of issues that could arise that are frequently over looked. Consider the amount of months you will be able to afford when paying the mortgage should your buy-to-let property remain vacant for a long period of time. A simple rule of thumb is to consider the property sitting vacant for a couple of months each year to provide a buffer.
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