Property Investment Sourcing  

Is Buy To Let still a good idea?

Although there are a number of investors looking to retire as a landlord due to increasing legislation and reducing tax benefits, Buy to Let is still a good idea for the discerning investor and here’s why:

• Incomes are potentially higher than savings rates
• Incomes are potentially better than returns on stocks and shares
• Mortgage interest rates are at an all-time low
• Provides a passive income with significant cashflow
• Potential capital appreciation (growth in value over time)
• Provides an alternative to a pension that is more readily accessible
• Tenant demand is high and rents are currently risin

How can I become a Landlord?

There are a number of ways to become a landlord, not all landlords set out with the intention of buying a property specifically to rent it out.  They may decide to let their current home due to an overseas work assignment or so that they can buy a new home to live in whilst keeping their existing property as an investment.  This can be done by changing your standard residential mortgage to a special Buy-to-Let mortgage product, you current lender may even allow you to let your property on your residential mortgage for a limited period of time.

You may have cash savings that are providing minimal returns that you can use as a deposit or maybe even to buy a property outright with the intention of letting it out, you may choose to do this in your own name or that of a Limited Company dependant on your individual financial circumstances (note: you should seek the advice of a Property Tax Specialist).

You may be able to release equity from your current home to use as a deposit or to buy a property outright, with the intention of letting it out, by re-mortgaging your current home or taking a further advance.

Note: It is important to take independent legal and financial advice so that you take the right course of action dependant upon your individual circumstances and property goals.    

Where do I start?

Investing in property can be a lonely and daunting prospect if you embark upon this journey alone.  It can be difficult to know exactly where to start if you are a first time property investor.  At Northwood Beverley and Hull, we work with a team of specialists who will help you on your property investment journey, helping you to buy just one property or helping you build your property portfolio.  Our team consists of:

• Property Tax specialists who will help you to determine the best vehicle within which to purchase your property dependant upon your individual financial circumstances, whether it be in your own name or that of a Limited Company.
• Solicitors who will help you set up your Limited Company should you require it and assist you with the purchase of your property.
• Mortgage Brokers that will help you to find the best financial products with the best rates and terms dependant on your circumstances.
• Insurance Providers who will be able to provide you with comprehensive Landlord Insurance to meet your exacting needs.
• Building contractors who will be able to provide you with quotations should refurbishment of the property be required to achieve the best rental return on your investment.
• Maintenance Contractors who will be able to provide ongoing maintenance of your property ensuring that your property is well maintained and compliant with current legislation
• Our own in-house Property Specialists at Northwood Beverley and Hull who will provide honest advice on the type of tenant you could expect, your achievable rental income, management of your property ensuring that it meets compliance and is well looked after, whilst providing you with our fully managed or guaranteed rent service dependant upon your desired level of involvement.