The Boom of Buy to Let is in full swing. Untouched by the economic recession, Buy to Let carries on to be one of the most popular ways of investment within the UK.
Whilst recently there has been some bad news for buy to let owners and potential “wannabes”, it’s not all doom and gloom and the advantages of investing into buy-to-let still stack up against the disadvantages. So why is this?
- As a tangible asset, which can be understood and controlled, this may be one of the most reliable sources of investment around today. This could mean security for you and your family financially for future events such as children going at University, the holiday to the Caribbean that you have always dreamed of or even an early retirement.
- Buy to Let provides two types of income. The first source of income is, of course, the rent paid by the tenants of the property and the second would be the capital growth on the property itself. This will depend on various factors such as market prices and locations but regenerative areas are becoming increasingly in demand, which is causing property and rental prices to rise.
- Renting has become very popular in recent years. Due to the difficulty people find getting onto the property ladder and the no-ties lifestyle trend that allows them to relocate as often as desired, there appears to be less chance of experiencing periods where your property is not rented out. Although, if this was to happen the loss in income would be outweighed by long-term appreciation of the property.
- Remember to explore your options. For example, apartments are much cheaper to buy and are generally easier to let out as rental prices are normally lower on this type of property. This means, that if you have the funds for various apartments you can build your portfolio, which means you effectively increase your income.
So, what do you need to know? When it comes to buy to let, people falsely think that getting a mortgage is going to be a difficult process but it doesn’t have to be. A buy to let mortgage is similar in lots of ways to a standard home mortgage. There are though, some difference to be aware of. Interests rates tend to be higher and you will need a bigger deposit: a minimum of 25%, although many of the best deals do want to 40% or more.
Our advice on buying-to-let? Find someone who knows what they are talking about. Someone who will give you honest advice that is right for you, even if it’s not what you want to hear. Our personal recommendation would be Bight Advice, a local, trusted company who we have worked with many times.
And on the letting side? Well, what better place than home? Here at Peter Lane we work with lots of people to let their newly purchased homes, making the process as smooth as possible. As always, we take pride in providing only the best customer service.
Our ethos? Work with people you trust and you will reap the benefits.