Buy to Let

Residential Investment Property, or the more commonly used definition, Buy To Let, remains a sound investment option. The following trends are positive indicators that this will continue to be true in the UK:-

• A rising student population
• More single households
• Increasingly flexible job market
• New tax-efficient property investment opportunities
• And the availability of more competitive mortgages.

This is not, however, a get-rich-quick scheme. The best way to take advantage of this investment opportunity is to have a medium to long-term view of 5 – 10 years.

Example

The following example demonstrates how this type of investment works and what sort of returns are possible.

A two-bedroom house in Swansea is purchased at £71,000 to let on a 6-month Assured Shorthold Tenancy lease with rent set at £450 per month (£5400 per annum).

A deposit of £20,000 plus costs was invested and the BTL (Buy-To-Let) mortgage of £51,000 over 15 years on an interest-only basis was £243.58 per month (£2922.96 per annum).

This investment provides a small annual income that should increase with future rent reviews and the property value should also increase in future years.

If Buy To Let interests you, register here

Alternatively, you can find out more about Commercial Investment