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