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Secured Loans

  BUY TO LET MORTGAGES

 

So if you think that investing in property is a good idea, read on....

Why invest in property and what are the risks?
Buy-to-Let Mortgage Tables
Buy-to-Let Mortgage Enquiry form

1. Why invest in property and what are the risks?

Buy-to-let investments can be a lucrative option for investors when stock markets are underperforming. Yields can be as high as 10% with the added bonus of potential strong capital growth. In addition, with interest on some buy-to-let mortgages at below 6%, the growth in an initial investment geared at 80% over 3 years can be higher than 30% (even accounting for stamp duty and administration costs). Although the rental market has grown significantly in the last few years, it is still nowhere near capacity with housing professionals and mant profesionals are forecasting further growth in the rental market.

Why invest in property?

  • Historically, property values have seen strong growth and forecasts still show potential capital growth as encouraging low cost of borrowing likely to continue the advantageous gearing effect of financing with a mortgage increase in rental demand, with the Government predicting an extra 3.8m homes will be required between 1996 and 2021, of which 1.4m would probably be rented the rental market likely to reemain bullish as prices often too high for many first time buyers, who are choosing instead to rent.
  • The Housing Act 1988 de-regulated the rental market and provided a fairer legal framework for tenants and landlords

So, the rental sector will continue to grow. However, investment in property comes with some risks. What should you consider when investing in property?

  • Ensure you buy a property that provides the best mix of stable and lucrative rental income, and a strong capital growth potential.  For the majority of us, we will not find this property in the area in which we live. If you are not sure, take professional advice, but in principle:
    • Choosing the right type of property is essential, but can be difficult for those who do not understand the market
    • Location is important, both for attracting tenants to ensure the void periods are minimised, and for capital growth
  • Property can take time to buy or sell, so you do not have instant access to your investment

2. Buy to Let Mortgage tables - [Go]3. Buy to Let Mortgage Enquiry Form - [Go] Click the Enquiry Form to get qualified help with a Buy to Let Mortgage.

 

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