Buy-to-let may no longer be the hot property of the boom years, but it has seen a resurgence in recent times.
As an income investment for those with enough money to raise a big deposit buy-to-let looks attractive, especially compared to low savings rates and stock market volatility.
But beware, many investors who bought in the boom struggled as mortgage rates rose before the base rate was slashed to 0.5 per cent – and one day interest rates must rise again.
If you are planning on investing, or just want to know more, we tell you the 10 essential things to consider for a successful buy-to-let investment.
Like any investment, buy-to-let comes with no guarantees, but for those who have more faith in bricks and mortar than stocks and shares here are This is Money’s top ten tips.
1. Research the market
If you are new to buy-to-let, what do you know about the market? Do you know the risks, as well as the benefits. Catch up with the latest news in our buy-to-let channel.
Make sure buy-to-let is the investment you want. Your money might be able to perform better elsewhere. In recent years a high-rate savings account would beat most investments. Now rates are lower, but investing in buy-to-let means tying up capital in a property that may fall in value.
This compares to the possibility of a 5% annual return from an income-based investment fund or 3 per cent on a fixed rate savings account.
Remember that the return from an investment in funds, shares or an investment trust through an Isa will see you paying just 10 per cent tax on income and getting capital growth tax free. You will also have the ability to sell up quickly if you want….. read more »