Buy to Let (Investment)
It's essential that you do your research before moving into the BTL market. The BTL landscape has changed significantly over the last few years and it’s more important than ever to seek professional advice.
Before viewing properties, compare the different yields. The yield is the annual rent received as a percentage of the purchase price. i.e. a property providing £1,000 monthly rental (£12,000 per annum) on a property valued at £250,000 has a 4.8% yield. Be aware that this is a gross yield – you will have other costs to take into account including tax
Rent should be the key return for buy-to-let. Most buy-to-let mortgages are done on an interest-only basis, so the amount borrowed will not be paid off over time. If you can get a rental return substantially over the mortgage payments, then once you have built up a good emergency fund, you can start saving or investing any extra cash.
For an initial enquiry or a comprehensive financial review please email enquiries@pennymatters.co.uk
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