Low interest rates, special buy-to-let mortgage schemes and rising property prices have fuelled many thousands of people into becoming amateur landlords. So if you are contemplating investing in bricks and mortar this year, what are some of the things you need to consider?

Income or capital growth 

Before you consider investing in property, you should decide whether your aim is to generate regular income or capital growth. Be aware of the tax implications of buying and selling a second property. Profits are taxable and an eventual sale may incur a future capital gains tax liability.

Decisions, decisions

Who will manage your property? Many landlords choose a managing agent to look after their property. You will also need to take legal advice to draw up a renewable assured short hold tenancy agreement for a minimum initial period of six months.

Knowing your local market is essential to success, and this is where it can be very costly if you get it wrong. Location is crucial, as is access to parking and transport services.

And then there is the funding! Mortgage terms vary widely, many providers stipulating a rental income of at least 125% of mortgage costs. Do your sums before you start.

Buy-to-let continues to whet the public appetite, with investors attracted by the rental returns available and the potential increase in capital values. But remember: Caveat emptor (Let the buyer beware).

'Two million UK households now rent though the private sector.' (Association of Residential Lettings Agents 2002)