With inflation at an all-time high, it’s never been a better time to invest your money to avoid it depreciating in value. Investing in property is a great way to ensure that your money is working for you and buying to let is always a fail-safe option.
For anyone looking to get into the buy to let property market, there are plenty of ways to do it and lots of benefits to enjoy along the way. Consider this your guide on how to get into property investment.
What is a buy to let investment?
Put simply, a buy to let allows the buyer to rent out their property instead of live in it themselves. They essentially buy a property and become the landlord of whoever moves in. It’s the only legal way to do it, as UK laws dictate that you can’t rent out your property unless you have this specific kind of mortgage.
However, before you invest your money, you need to select the right kind of buy to let mortgage. With so many available, choose carefully, consider your options and seek a professional advisor if you’re feeling unsure.
How to get into the property market
With lots of homes available to buy, there are plenty of opportunities to secure an investment and rent it out. In fact, a recent survey conducted in the UK showed that the UK needs 230,000 new rentals per year to handle the growing number of renters.
The greatest advantage of buying to let is, of course, the regular income that it provides you. Not only that, but your tenants’ rent should also cover the cost of any renovations or repairs that need to be done.
You may also want to consider the option of renting a House of Multiple Occupancy. This way, you can receive a sum of up to three times higher than if you were to rent the whole property on one agreement. Make sure to check all the rules and regulations around an HMO as different councils have different rules and you’ll need to obtain a licence to do it.
What to look out for along the way
There are plenty of things to consider when investing in a buy to let. First, calculate what your capital growth is going to be, including what you need to do to add value to the property should you wish to sell it later on down the line.
When looking for a potential property, location and size is key. Depending on what your money can buy, think about the kind of renter you’d prefer. Would you favour a family over students? Maybe you’d like to appeal to young professionals or people who just need something handy in the city.
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