You could be forgiven for thinking that property investment is no longer an attractive proposition given the changes that the government has imposed particularly in the buy to let market.
But property investment in the UK still marches on and there is no reason for you to believe that you cannot achieve some very worthwhile returns in the buy to let market. There is still a rising demand for rented properties and this demand is not going to go away any time soon.
On top of that rent rates will increase in line with inflation and there have already been some cuts in mortgage rates and it is a good time to get involved with a buy to let mortgage. You must understand that mortgage rates can increase at any time though and this needs to be factored into your return on investment calculations.
To make investing in property even more profitable there are ways that you can reduce the costs involved. These ways to save money on your investments could make a lot of difference to you and may even be the tipping point as to whether you proceed with an investment in a property or not.
Your Buy To Let Mortgage
If you need a mortgage to complete your property investment deal then you need to read this. If you need a buy to let mortgage then in most cases you will get the best possible mortgage if you are prepared to make a larger deposit and you have very strong cover on your rent to mortgage payments.
When seeking a buy to let mortgage most brokers will insist that you can command rent amounts that will provide 125% cover over your mortgage payments. It is pretty common for lenders to require at least a 25% deposit and more in some cases, so if you can exceed this deposit amount then your chances of finding the best mortgage at the best rates will go way up.
You need to take into consideration the fees attached to a buy to let mortgage offer before you choose the one that is right for you. These are likely to vary so choose the best mix of mortgage rate and the associated fees.
Investing in the Right Place and for the Right Tenant
You need to be clear from the outset what kind of tenant that you want to attract. If you want to attract a family there is probably no need for you to spend a small fortune on fancy furniture to catch their attention. It is likely that they will already have their own furniture and will prefer a blank canvas property to one that is already furnished and that doesn’t suit their taste.
If you prefer to go after the student market then think about areas that have good universities in them so that the demand will be there. A good example of this is Sheffield which has two major universities. There is bound to be good student rental demand in a city like this so it makes sense to check out property investment in these areas.
Save Money on Property Investment with a Hands Free Partnership
Partnering with the experienced property investors at CPI makes a lot of sense. You will be able to achieve a good return on investment but have none of the hassles that are associated with finding a good property to invest in and making the whole thing work. Contact us here for more information.