At this time with house prices apparently endlessly on the rise again it is not surprising many are considering buy-to let again. But Buying-to-let is very different from purchasing your own home, and you need to approach it with a completely different mindset.
Established landlords run their portfolios like a business, and never let sentiment get in the way of decision making. First you need to think not about where you would like to live, but what would be best to rent out. Find out which type of properties let well in your area and the best neighbourhoods for buy-to-let. Professional independent mortgage advice is vital some more specialist lenders can only be access through a mortgage broker.
You must really do your homework – letting a property comes with many rules and red tape, from ensuring your furniture complies with fire regulations to adhering to health and safety requirements for gas and electricity. There are also tenant deposit schemes to sign up to, careful vetting of potential tenants and the production of a thorough inventory for the property and its contents. Finally, ensure you have adequate insurance to cover the buildings, contents (if furnished) and possibly even your rental income.
Buying-to-let is a long-term investment and it’s useful to think about why you are investing in property, and what your exit strategy is – do you want the property to provide you with a pension in retirement for example? Do you have a plan to repay the mortgage at the end of the term? Enable IFA’s in Bishop’s Stortford can talk through whether buy to let is right for your investment portfolio.
Your home could be at risk if you do not keep up your mortgage repayments.
Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 – Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE