Buy To Let Investment Properties
Property is an excellent long-term investment, with the potential for a good income and good growth. Capital growth in property in the past 25 years has exceeded just about any other field, particularly in the South East of the United Kingdom.
However, fluctuations in the market and inevitable delays in selling property make it an unsuitable choice for anyone needing short-term returns.
As work patterns change and people become more mobile, demand for rented property and short-term lets is high. In the last few years this gap in the market has been filled increasingly, not by big landlords, but by individuals buying one or more properties as an investment and letting them out to cover the cost of the loan. Many people invest in buy to let property as a pension. The rent can be used to supplement their retirement income, or the property can be sold and the proceeds used as a nest egg.
Some lenders now offer tailor-made packages for just this market. You can now get a buy to let mortgage at interest rates to suit almost any circumstances. These include fixed rate mortgages, discount mortgages and tracker mortgage deals – and are often highly flexible. The difference between a buy to let mortgage and a standard home loan is that most lenders won't just take your salary into account when assessing eligibility. Potential rental income from the property is often also included in their assessment.
Industry experts predict a solid future for buy to let and say that the days of rocketing short-term capital growth are gone. Long-term investors are set to benefit from this and those looking for steady growth are returning to the buy to let market.