Buy To Let – still a good idea?
If you’re a landlord already or thinking about becoming one, you need to read this!
Buy-To-Let has been prominent in the press recently – I just love the media for giving a balanced view (spot the sarcasm!).
So, is Buy to let still a good idea, following George Osborne’s attack on landlords? Well, it depends….
First things first…
- ARE YOU MAKING A PROFIT ON THE RENT? Make sure you take into account your monthly mortgage payments, and the restrictions on mortgage interest tax relief.
- ARE YOU IN IT FOR THE LONG HAUL? Things start looking up when you view buy-to-let property as a long-term investment. Analysts at the property group JLL have predicted that house prices in the South East will continue to increase by over 26% by 20201.
- IS BTL THE BEST BET FOR RETIREMENT? Many landlords are planning on living off rental income in later years – and with the new pension freedoms they can use some of their pension pot to buy investment property.
- WILL THE UK’S HOUSING CRISIS EVER END? The private rental sector continues to be an important part of the housing market whilst there is a chronic shortage of homes. This situation looks unlikely to change in the near future.
- SO, IS BUY-TO-LET STILL A GREAT INVESTMENT? With a volatile stock market and negligible interest rates on savings, there are few other investments that can achieve comparable growth in the long term.Still Confused?Yeah…it can be a bit of a minefield. I know it’s hard to believe, but we love working this stuff out & making sure that what you’re doing is right for you.Shout if you want to chat.
Your property may be repossessed if you do not keep up repayments on your mortgage.
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- 1 http://www.telegraph.co.uk/property/house-prices/which-areas-will-see-the-biggest-house-price-rises-by- 2020/