Owning a buy to let in Tameside and renting out your property can be very rewarding. It can be a way of having a regular income coming in, together with actually owning something that should increase in value over time.
If you are considering renting out a property, there are many things you need to make sure you get right, such as rental income, statutory obligations (e.g. gas and electric certificates), and of course having the right tenants in-situ.
What are the benefits of a Buy To Let?
You’ll have the option of a Buy to Let mortgage
Unless you can fund your property purchase with cash, the chances are that you will need a buy to let mortgage. For landlords, this is the most popular way of acquiring property, which in itself can benefit you in a number of ways including:
- Interest only payments
- Longer mortgage terms
- Mortgage payments can be offset against tax
- Less strict regulatory processes
The good news is that there are a number of products and lenders out there to choose from, and you should be able to get a good deal from a lender.
If you have a larger than average deposit to put down, for example around 35 to 40 per cent, then the deals get even better.
Consumer website which.co.uk has some very useful information on mortgage deals worth looking at, and of course as your local estate agent we are happy to help and put you in touch with a recommended mortgage adviser who will assist you with lending criteria and affordability.
You’ll get potential high returns on your money
When you own a rental property, you should benefit in two ways, financially speaking. Firstly, you’ll have a monthly income stream coming in. If you’ve done your sums right and have a rental income that produces a good yield, then this is good news.
Secondly, you should see your property price go upwards over the years. Despite everything, property is still seen as a sound investment. We know for example that as soon as a rental property in Ashton Under Lyne is marketed, then we get a huge number of enquiries.
Top Tip Do your homework. If you need help making sure everything adds up, talk to us and we’ll do our best to help you.
You’ll diversify the risks
It’s fair to say that the economy has taken a battering over recent months. High street shops and large businesses have come a cropper because of lockdowns and uncertainties over investment going forward. Where previously you may have been certain of your other investments, perhaps now there’s an added element of risk.
If you have a few pounds stashed away in various projects or investments and are worried what the future might hold, property in Tameside is still seen as a sound investment with good returns. Again though, you must do the maths and look at interest and repayments and make sure the rental income covers not only fixed costs, but also maintenance and the other expenses associated with rental properties.
Top Tip Seek the advice of a trusted lettings and property expert to find out which areas will present the best opportunity for rental incomes.
You can help friends and family
We’ve seen a trend recently of people investing in buy to let properties as a way of helping friends and family out, while at the same time building up a property portfolio.
It’s an interesting concept and will not be for everyone but if you know someone going to college or university, it could be a way of generating useful cashflow.
Top Tip There are rules and regulations that tenants and landlords have to abide by whether your tenant is someone known to you or not! It’s probably even more important to get it right if you rent to friends or family as you won’t want conflict in the future.