Buy-to-let 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.
Meanwhile, the property market bouncing
back has encouraged more investors to snap up property in the hope of its value
rising.
Mortgage rates at record lows are helping
buy-to-let investors make deals stack up - you could fix a mortgage for five
years at just over 3 per cent at the biggest deposit level.
But beware low rates. One day they must
rise and you need to know your investment can stand that test.
There
is also a tax rise coming, as buy-to-let mortgage interest relief is axed and
replaced with a 20 per cent tax credit.Additionally, from April 2016 landlords will have to pay an extra
3% stamp duty on property purchases.
Promising does not mean most expensive or cheapest. Promising
means a place where people would like to live and this can be for a variety of
reasons.
Where in your town has a special appeal?
If you are in a commuter belt, where has good transport? Where are the good
schools for young families? Where do the students want to live?
You need to match the kind of property you
can afford and want to buy with locations that people who would want to live in
those homes would choose.
Before you think about looking around properties sit down with a
pen and paper and write down the cost of houses you are looking at and the rent
you are likely to get.
Buy-to-let lenders typically want rent to
cover 125% of the mortgage repayments and many now demanding 25% deposits, or
even larger, for rates considerably above residential mortgage deals.
Do not just walk
into your bank and building society and ask for a mortgage. It sounds obvious,
but people who do this when they need a financial product are one of the
reasons why banks make billions in profit.
Instead of imagining whether you would like to live in your
investment property, put yourself in the shoes of your target tenant.
Who are they and what do they want? If
they are students, it needs to be easy to clean and comfortable but not
luxurious. . For any query regarding purchase
of apartment visit allindiayellowpage.com