Buy to Let Properties
The UK property market, whilst cyclical, has proved over the long-term to
be a very successful investment. This has resulted in a massive
expansion in the buy to let sector.
Buy to let involves investing in property with the expectation of capital growth with the rental
income from tenants covering the mortgage costs and any outgoings.
Factors to consider
Think of your investment as medium to long-term
Research the local market
Do your sums carefully
Consider decorating to a high standard to attract tenants quickly.
Purchase anything with serious maintenance problems
Think that friends and relatives can look after the letting for you – you’re probably better off
with a full management service
Cut corners with tenancy agreements and other legal documentation.
Investing in a buy to let property is not the same as buying your own home. You may wish to get
an agent to advise you of the local market for rented property. Is there a demand for say, two
bedroom flats or four bedroom houses or properties close to schools or transport links? An
agent will also be able to advise you of the standard of decoration and furnishings which are
expected to get a quick let.
Letting property can be very time consuming and inconvenient. Tenants will expect a quick
solution if the central heating breaks down over the bank holiday weekend! Also do you want to
advertise the property yourself and show around prospective tenants? An agent will be able to
deal with all this for you.
This important document will ensure that the legal position is clear.
When buying to let, taxation aspects must be considered.
Tax on rental income
Income tax will be payable on the rents received after deducting allowable expenses. Allowable
expenses include mortgage interest, repairs, agent’s letting fees and an allowance for
Buy to let may make sense if you have ch