Good News For Buy-To-Let Landlords
With rental properties in record demand and house prices appearing to be stagnant in the UK, opportunities have arisen for potential buy-to-let landlords.
People who have plenty of capital currently have a great chance to bag a bargain by adding a buy-to-let property to their assets as a sound financial investment for the future.
However, prospective buy-to-let landlords should be wary of the risks involved and should choose their buy-to-let property carefully in terms of location and realistic rental income per month.
The best advice is to talk to letting agents in the area and seek their advice on the types of property that tenants want to rent in the UK.
According to the National Landlords Association rental income averaged at about 4 or 5 percent of the property’s value in 2010. This figure will vary depending on the location and type of property.
To become a buy-to-let landlord, a good deposit will be required but with competition in the buy-to-let mortgage market improving there are a lot of banks to choose from; with many banks reducing rates and fees.
Once a property has been bought, the safest way to maintain a steady income with little or no hassle is to gain professional residential property management from a respected letting agent.
Extra costs to remember aside from the mortgage are: maintenance costs, letting agent fees, safety tests and energy performance certificates.
