So you want to invest in property?
The top two investments are Buy-To-Let and Property Development
The number of buy-to-let mortgages has increased by 7% on last year and the number of new property developments has increased by 11% on last year, with the largest number being the South East of England.
Despite slowing capital gains, the average buy to let investment will have yielded a 21% return in 2017, thanks to rental increases of 19%, three times 2016 levels. Even with such increases, renting still proves to be cheaper than buying, with the average rent being only two-thirds of the mortgage costs on the same property. If rent on a buy to let property is very low, it is possible that no tax is even due, but all income should be declared and dealt with through the appropriate authorities.
Have you been thinking about investing in property? Buy-to-let is a great first-time project and once you have some experience you can look at setting up a larger Property Development.
If you’re looking to take on a bigger project why not invest in a property development? This could range in size from one house to a whole housing estate. There is the potential for huge profit if you choose the right project and manage it correctly.
Our top tips for buy-to-let are:
- Do your research
- Choose an area popular with tenants
- Calculate your costs
- Shop around for the best mortgage deals
- Know your responsibilities as a landlord
Our top tips for property development are:
- Calculate your budget and stick to it!
- Use a specialist property development lender
- Choose an area where housing is in demand
- Hire an experienced property manager
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