Last week’s budget announcement has brought about several changes for property professionals but for landlords, especially those investing in buy-to-let, things are looking up.
Buy-to-let refers to a property purchased specifically to let out to tenants and allows for those buying in this way to take out a mortgage specifically for this purpose; which in turn allows for certain tax benefits.
For the first time since the recession began, house prices are once again steadily increasing and those looking to make an investment in property will see more housing stock to choose from.
Before committing to buy-to-let however, it’s important to consider several factors. You need to research the marketplace and be sure of the location you want to buy in, and the type of tenant you’d like to attract.
Most people considering a buy-to-let property will want to make at least 125% of themortgage repayments as rent, and as this kind of mortgage tends to be set higher than standard, this can sometimes prove problematic if thorough research isn’t conducted ahead of purchase.
Although getting good value for money is likely to become a lot more difficult in the future, those who have been uncertain about the benefits that would come from buying-to-let in the current climate can rest assured that they will see a much better return in their investment in the near future, as more and more people are likely to look into renting.
The Letting People works with first time buy-to-let investors and those expanding their property portfolios to match landlords with their perfect tenants and is happy to provide additional advice. To find out more please contact your local branch of The Letting People, in Leamington Spa or in Milton Keynes.