Buy to Let

When compared with other investment media, such as the stock market and government bonds, the property market has considerable appeal to new and veteran investors alike, as it is a unique investment media offering opportunity for annual income and long term capital growth.

 

With the introduction of the ‘Buy-to-Let’ mortgage, property investment in the residential sector has become easily accessible to a large proportion of small investors, with minimal set-up fees and outlay potentially yielding good returns. It is important, however, to ensure that you involve an appointed Letting Agent at an early stage when considering a ‘Buy-to-Let’ investment to ascertain your target market place and the requirements that it may have from a property, so as to maximize your success within the market.

 

The ‘Buy-to-Let’ mortgage works on the basic premise that, following the purchase of an investment property, the rental income partly or fully services the Mortgage payments for the attached borrowings. It is not unusual for Mortgage payments to be slightly higher than the income received from the Letting of the property, but it must be taken into account the ‘net effect’ of the small outgoing each month. It is essential to keep up with any related Mortgage payments, your property and investment are at risk if you do not.

 

Further details and advice on ‘Buy-to-Let’ Mortgages may be found by accessing the Financial Services tab at the top of this page.