Wise Investments

Investors in the buy to let market can still make money providing they work out, carefully, their costs, making sure they can afford any shortfalls that may crop up. The ideal situation is to get to know the area, rents that can be achieved and to think in personal terms, is it to be a long term project for a retirement fund or extra cash to see children through university.

Rental yields are now starting to improve and Scottish yields have risen by 0.18% in the last quarter.

Enquiries for rental properties are up 15% from the previous quarter and surveyors say investors are buying up properties.

Landlords with fifteen or more properties view the market differently to those who may only have one. Some bought earlier in year with a small deposit hoping to make good returns.

Those whose two year fixed rate mortgages are about to end may find their costs going up by 25%. This in some cases will leave landlords having to top up their mortgage repayments. Some landlords have already had problems and have their properties on the market. Those with more properties and cash will recover. Some who have invested recently may find, at least for a while, their repayments are more than the rents. Some will top this figure up other will be forced to back out of the market.

Landlords should be sensible when buying a property and buy a property at below market value so that the value will be in the house not in its rental value. Investors should look out for bargains and put in bids well below the current price and take their time before purchasing.

Buy To Let Property
Buy To Let Tips