The Buy-To-Let market place is booming. More and more people are investing in a second property as a long term investment plan. As attractive as the proposition sounds, there are a number of potential pitfalls that need to be taken into consideration. Use the steps below to ensure that your Buy-To-Let investment is a success.
#1 Choose The Right Property
The location is extremely important. Make sure that speak to a number of local letting agents to determine the supply and demand in the area. Look at such things as whether there are local employers or a university. You can get the details of letting agents near you by contacting The Association of Residential Letting Agents.
#2 Choose The Right Mortgage
You will need to check with your lender to how much you eligible to borrow. Most lenders will allow you to borrow 85 percent of the properties value. Also most lenders will take into account the expected rental income when they are deciding how much they will lend. Make sure that your rental income covers 125 percent of your monthly mortgage payment.
#3 Work Out Costs And Income
Work out how much your monthly mortgage repayment will be...
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