Investors take unclouded view of buy-to-let’s future
British passion for property investment seems to be still going strong despite the base rate jumps over the past year. There are still good investment opportunities for buying overseas and UK homes as long as you are careful and stick to some basic principles you can reduce the risk of investment. Secure your finances. Choosing your financial package carefully is a must to ensure your investment covers mortgage repayment, repairs and void periods in letting. Know the latest tax regulations. If you are not sure about how much tax you should be paying on your property investment then you should seek professional advice, or you could be hit by fines. Buy-to-let is a long-term investment, long-term demand from tenants looks strong, and property prices are still rising, so buy-to-let should continue to offer excellent long-term investment opportunity. Pick your location carefully, when choosing where to buy your investment property evaluating the level of demand is a must. Factors to look out for include large numbers of other rented properties. Choose your tenants carefully. A bad tenant can cost a you a lot of time and money. All tenants should be carefully screened and asked for references. A proper tenancy agreement is also necessary. Using a letting agent will ensure the latest legislation is adhered to. Consider buying overseas. Overseas investment is growing in popularity and with some markets offering excellent returns this is likely to continue. However, whether investing in the UK or the Caribbean the same principles apply. You need to do your research to identify any hidden costs involved in buying abroad, especially for tax and inheritance law. Diversify your investment. Diversifying your property portfolio can allow for better risk-adjusted returns. If you are considering your options in this market ensure you speak to an independent financial adviser and as many property professionals as possible. Buy-to-let and overseas mortgages are not regulated by the Financial Services Authority.