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Kids Off To University - Have You Considered A Buy-To-Let Property?

September 4th 2014
By: Melanie

If you are thinking about buying a buy-to-let property for your kids this autumn then not only could you save yourselves money on rent but you also could be making a savvy investment.

High in demand areas are Cambridge and Oxford, but other cities and towns with Universities and colleges an also offer a good investment potential.

These are the things you will need to consider:

• Buy new or newer property, with as many bedrooms as possible, that way you will be able to get as much return on your investment as possible.

• Make sure you buy a property within a central location, ideally next to a college/university, or with good public transport links.

• Avoid properties which are a bit quirky, as this could cause you problems when renting it out or selling later on.

• Use a residential agency who are part of the Association of Residential Lettings Agents, such as Intercounty. They will be able to deal with vetting, contracts and filling the space when it becomes vacant. All charges are also tax deductable.

• Make sure you access the right mortgage by going to a broker such as EMS, they will be able to let you know of the best deals available in the market place.

• You will need to pay income tax on your rental income, minus any relevant deductable charges. Capital gains tax (CGT) is widely expected to be increased to the level of income tax, up to 40 or 50 per cent for higher taxpayers.

If you have any other questions about buying a buy-to-let property, then why not pop into your local branch of Intercounty for a chat and a coffee or call our team on: 0844 8111090.