by Sam Fox www.warringtonmortgagecentre.co.uk
VIDEO: Buying an investment property as a buy to let can be either two things… Awesome, or, a pain in the backside!
But overall, the aim of buying an investment property is to generate additional income and create longer term wealth as house prices increase.
There is so much noise online on the best way to buy your first investment property.
(Usually, kids that still live at home and think they’re the dogs Bs).
But here’s a few basics to think about ahead of buying your first Buy to Let to help make sure it doesn’t start to become a headache!
Most Buy to Let lenders will ask you to put down a 25% deposit. If you already have a 25% deposit saved then that puts you in a very good position to get going. Buy to Let lenders typically assess the mortgage based on the rental income of the property and profitability of it, although they will still ask you about your income and expenditure so it’s important to make sure everything matches up. As long as the property rental income is supporting the mortgage and meets their internal affordability calculations, you should be good to go.
DO YOUR RESEARCH!
Go and research the areas where you want to buy a buy to let property and ask yourself:
Will it be profitable?
Is the area in high demand / close to motorway links?
There are tons of questions you can ask yourself whilst trying to find the perfect property. But the most important thing is, you want to buy an asset that’s going to avoid long periods where it’s not got a tenant. You should always have a target tenant in mind when viewing your properties, don’t walk around with the mindset of “I wouldn’t want to live here” because you’re not going to! It’s designed for that specific type of tenant that you’ve got in mind, for example, if you’re searching for a student – look at flats that are close to motorway links and train stations. If you’re looking for a family, you will want somewhere with a garden and a couple of extra bedrooms – you get the drift!
CONSIDER YOUR TAX POSITION
Buying a property to rent out internally creates an additional income stream, that might go against your income allowances each year. We advise speaking to an accountant to get an understanding of your tax liabilities and any other extra assets you might have when generating a profit from a rental property. As long as you’re prepared and do the calculations then there won’t be any unexpected surprises on your Buy to Let journey!
So, if you’re looking for information on Buy to Let mortgages, you’re a first-time landlord or even a serial investor and you need a little bit of help navigating the market – feel free to reach out and one of our experts will be able to guide you through the process.
Find out more via our website: https://warringtonmortgagecentre.co.uk/buy-to-let/
Or call us on 01925 573 328
Disclaimer: As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
