Despite the recent tax changes to the buy to let industry, an investment property can still offer good returns, but in order for your investment to be worthwhile you need to one make sure that you see your BTL as a long term investment and secondly you need to make sure that you do it right.
1. Generally in order to get access to the best buy to let deals you need to have saved up a reasonable sized deposit. In order to see what deals are available contact a mortgage advisor such as Embrace Mortgage Services, follow this link to find out what BTL mortgages are on offer
2. Understand the facts: Make sure you know exactly how much you will need to pay out to secure your rental property, such as the fact that since April last year you will now need to pay 3% stamp duty on top of the purchase price.
3. Research: make sure you have a good idea of the area where you intend to buy your buy to let, considering historical house prices and so fourth. A good local estate agent such as Intercounty will be able to help you work out which properties will give you the best returns.
4. Work out the sums: calculate how much a mortgage will cost you each month, plus maintenance costs and then how much you can charge for your rental property, then take off two months rent from your calculations to cover any vacant periods.
5. Consider whether to employ the services of a lettings agent, as this could reduce your properties void periods, they can carry out tenant checks and make sure you follow and keep up to date with new rental regulations.
These are just some of the aspects you will need to consider then thinking about renting out a property. For our full investment guide please follow this link.
Readers might also be interested in: Buy to let – thinking about becoming investor?
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
LSLi Ltd t/a Embrace Mortgage Services charge a fee of between £399 and £699 on application. The amount they will charge is dependent on the amount of research and administration that is required
Intercounty is a trading name of ICIEA Limited and is an introducer appointed representative of First Complete Ltd for purpose of the provision of advice in relation to mortgage and non investment insurance products. Mortgage and Protection advice is provided by LSLi Ltd t/a Embrace Mortgage Services, an appointed representative of First Complete Ltd. First Complete Ltd is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.
Please note that Embrace Mortgage Services does not offer advice on taxation matters. You should contact your accountant or other suitably qualified person to confirm whether this product is appropriate for your circumstances.