Buy To Let - Choose a Property
Buy To Let Investments - Choosing a Property You Can Afford
PROPERTY ADVICE BLOG - Buy To Let Investments - Choosing a Property Your Can Afford
PROPERTY ADVICE BLOG tip!
Before you choose a buy to let property mortgage, take some sound property advice from an independent advisor or mortgage intermediary, in order to help you consolidate your ideas.
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Questions to consider before you make an investment
• How much profit do you expect to make from this property? Is your forecast realistic?
• Do you have enough funds to invest and maintain a property?
• Do you have sufficient savings for any problems or difficulties?
• Have you taken specialist property advice on tax related earnings from rent?
Clearly the size of the mortgage you can afford will be directly related to the rent that is achievable for that type of property in the location you have chosen (do your homework thoroughly!) so that the rent covers the interest payments on the mortgage. Needless to say you also need to remember that, as with any investment, in considering how much to spend on the property you should always keep in mind that as well the value increasing your property can also fall in value.
If you structure your finances correctly though and don't over stretch your budget by allowing for contingencies such as void periods (when the property is not rented out), maintenance costs and management costs, then you have the foundations for a solid long term buy to let business.
Your responsibilities
Once you've made your decisions and chosen your buy to let property then you need to consider whoose going to manage the proeprty for you. You can either use a managing agent or manage the property yourself. If you're going to go ahead and manage the property yourself then do remember your legal responsibilities and that you'll be responsible for:
• Finding tenants
• Checking tenants’ references
• Collecting the rent and maintaining the property
• Gas Safety Certificate
• Energy Performance Certificate
• Landlords Insurance
• Placing any deposit cash in an approved scheme such as the Deposit Protection Scheme
• And dealing with any problems!
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