In­vestors take un­clouded view of buy-to-let’s fu­ture

Kentish Gazette Canterbury & District - East Kent Property - - MONEY MATTERS -

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.

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