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That being said, it is also vital to take into account situations where the
property sits empty for a few months, or interest rates rise.
If your buy-to-let is financed through a mortgage, the rent-to-property price
yield will not be the final return you get. The costs need to be accounted for
to arrive at the final gains.
Remember to deduct your annual mortgage costs from the annual rental
income, and express it as a percentage of your initial deposit to work out the
return on investment. It is also essential that you count in the taxes,
maintenance costs and miscellaneous landlord expenses to have a clearer
picture of the net return.
Property investments may not guarantee instant riches, but if you are
willing to acknowledge that your property value may fall in the short term,
and envision a potential of drawing out 125% of monthly mortgage
payments, then buy-to-let investment in the UK may prove to be a good
long-term venture.
4.Look around and get the best mortgage deals
Just walking into a bank or building society and asking for a mortgage may
not be the most prudent thing to do. You may only end up drowning
yourself into endless mortgage repayment making heaps of profit for your
bank.
Consider taking advice from a specialist buy-to-let mortgage broker, asking
around your family and friends who have undergone property transactions,
and searching online to compare different deals. A little vigilance may go a
long way in yielding you great returns from your investment.
5.Determine a target tenant
Remember, your buy-to-let investment is not for you to live in! Instead of
keeping your personal preferences paramount, think along the lines of your
target tenants.
Your target tenants may range anywhere from students to retired couples, or
young professionals to families. While students may only want a comfortable
and capacious place, young professionals may expect a modern and stylish
abode with a sense of luxury.
As a property owner, your greatest relief would be to have your property
rented for the longest of time to ensure a constant rental income. When
investing in a buy-to-let, it may prove worthwhile to remember that
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