to let mortgages : What Should You Do ?

2008-05-20 10:03:38

( Financial )



When you take out buy to let mortgages you may choose to do so with refinancing. You may even choose to take out a detroit mortgage. But whether refinancing mortgage or other, here is some useful information if you are a buy to let mortgages landlord.

What should you do when your property is unoccupied?
Remember, there will be times when you can’t find tenants, your property will be empty and you won’t be getting a rental income. But the reality is that you will still have to keep on paying your mortgage. You should plan ahead how you intend to make mortgage payments should this happen. This is especially the case if your property is in an area where supply exceeds demand.

What about maintaining your property?
Not only will you have to manage your property but you will also have to maintain it. Not only should you think in terms of repairs and regular maintenance – but also in terms of routine improvements to maintain the attractiveness of your property. There is always a strong possibility that you will have to overhaul a property once tenants have moved out. This must be financed by you. Remember that while you are improving your property it will be empty and you won’t be receiving a rental income.

What about using a managing agent?
There are many different responsibilities as a landlord and your time might be limited. Maybe you should use a managing agent. This costs a certain percentage of the rental income.

But before you invest in buy to let mortgages you should ask yourself certain questions: consider these points carefully before you make a financial commitment.

When making the investment
- Have you got enough of your own capital to invest?
- What are your reasons for investing?
o Income generation
o Capital growth
and do you have realistic expectations.
- Are you able to have your capital tied up for a long time?
- After making this investment will you still have enough saving as well as other forms of capital?
- Have you availed yourself of specialist tax advice regarding the implications of buy to let property investment – including tax treatment of both expenditure and income involved?


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