mortgage to let : A Good Investment ?

2008-04-28 12:02:52

( Financial )



Want to make a property investment? Have you considered mortgage to let? Before considering what the best buy to let mortgages are you need to find out more about what you need to consider when taking out buy to let mortgages.

Anyone seriously considering mortgage to let as an investment should avail themselves of expert advice about tax, legal, financial and property management issues.

When you take out a mortgage to let, essentially you become a landlord. You need to remember that when you own an investment property it is not the same as owning your own house. Effectively you will be running your own small business.

But before choosing a property and arranging the finance so you buy it, there are certain factors you should take into consideration.

How should you choose a property?

Research your market
Research the market in the location you want to buy the property, carefully. You might choose to do this yourself or alternatively, make use of the services of a specialist letting agent who can help you select a suitable area and property. Should you decide to do this research yourself you need to get your information from:
- local papers
- estate agents
- local authorities
- local employers.

They can inform you about the demand and supply for rental housing.

Finding the right tenant
You need to think about what kind of tenant you want. Do you want:
- single people?
- families?

These have different requirements when they choose a home to rent.

Remember – the property you choose should have features which make it appealing to tenants and not to buyers.

Choosing the right location
How close is the property to local amenities? – transport, shops, schools. Are these amenities important to your would-be tenants. Say, for example, you are aiming for families – the proximity of schools would be an important factor.

The size and condition of your property
Choose a property with an appealing size for your target tenants.

And what condition is it in? Does it need expensive maintenance? Remember – usually older houses need more attention.


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