Buying a Property to Let Out
Buying a property to let out is something that can be beneficial for many people. Having property as an investment is a wise choice and can be better than other investments if you are looking for something that will be low risk, and in addition to this, there are always people who are looking for properties to rent, so you would also be providing homes for people too.
Having a property that you let out can also generate you a consistent income, however you also will have responsibilities as a landlord and should be fully aware of this before you go into it. Most landlords prefer to have their property managed by a professional lettings agency who will be able to take on most of the work that comes with it, however you can do it yourself if you have the time and the knowledge.
Buying a property to let works slightly differently to buying a property to live in – you need to have a buy to let mortgage which takes into account the income that you will be earning from renting the property out to people. You can choose from an interest only mortgage or a repayment mortgage and what suits you best can vary, so it is something that you should talk with a financial advisor about beforehand so that you are fully informed and then you can look for a suitable mortgage for you.
Another thing to consider is the property that you choose to rent out. Think about the tenants that you want – some landlords own properties that are for students, whereas others will let out properties to individuals or families. You might want long term tenants or prefer shorter stays. Getting to know the area is essential when choosing a property as this will also help you to choose something suitable for your target market.
You will also need to find a solicitor like this Gloucester solicitor www.deeandgriffin.co.uk/ who has plenty of experience when dealing with buy to let mortgages when you are buying the property. There are certain things to be aware of when buying a property when you already own one, such as the additional stamp duty that you will pay, and a good solicitor will be able to advise you on what you need to know.
