Is the world of buy to let for you
By: Mortgage Services | Posted: 20th September 2007
Landlords who rent out properties to students are making healthier returns than the rest of the buy-to-let market with some areas in the UK delivering the best performance. Landlords must choose between fixed, variable, capped to flexible interest charges. Landlords in recent years with a change in the law gained the power to evict problem tenants more easily, and so the prospect of becoming a landlord is more attractive than previously. Local knowledge is of utmost importance, and landlords must also consider all of the ways in which renting to students differs from the average rental property. You earn a profit from the rent but also Buy to Let landlords purchase property because of the potential for long-term accumulation of capital growth.
AST gives both the landlord and the tenant assurance of the tenancy and specifies the term the property is to be let and specifies notice period for both parties. As a landlord you could enjoy making a monthly profit through the rent that you charge on the property and you could also look forward to longer term accumulation through increased equity on your property through rising property prices, although there is no guarantee that prices will continue to rise. The person who purchases a property for investment purposes is called a landlord or landlady.
Letting
There are a number of tax issues that need to be looked at in order to maximise your tax position, such as being able to offset your maintenance costs, letting agent fees etc as well as any interest paid on a buy to let mortgage against your tax. Letting the property you have been living in and releasing some of the equity to use as a deposit to buy another is very popular.
There are a number of tax issues that need to be looked at in order to maximise your tax position, such as being able to offset your maintenance costs, letting agent fees etc as well as any interest paid on a buy to let mortgage against your tax. The Association of Residential Letting Agents (ARLA) state that a property needs to be in the right area, close to transport and other facilities, and in good condition. One of the keys to successful letting is reliable tenants and we work hard to maintain a high profile as a quality letting agent to ensure that we maintain strong tenant demand. In essence, a building is purchased with the view to letting it out to a tenant in return for a rental income.
http://www.mortgagehome.co.uk/
About the Author
Occupation: Broker
Lee Car has been a UK mortgage broker for over 10 tens with a vast knowledge of buy to let, commercial, insurance and residential mortgages. http://www.MortgageHome.co.uk
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Tags: interest charges, maintenance costs, best performance, investment purposes, utmost importance, rental property, buy to let mortgage, letting agent, landlords, notice period, local knowledge, becoming a landlord