Buy To Let - Becoming A Successful Landlord - How To Gain Top Profits From Your Rental Property
- Date: 2007-04-03 - Word Count: 292
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When you are considering investing in a Buy to Let property you first need to decide what your rental income is likely to be, how much capital you intend to invest in the property and for how long you want to invest.
Finding a Buy to Let mortgage
Lenders tend to approve a buy to let loan on the expected rental income from the property, as opposed to the applicants' income. The mortgage company will also consider the location of the property and how comfortably the rent will cover the mortgage payments, and also the experience of the landlord. You need to be a homeowner and have a minimum 15% deposit.
When working out the figures for your Buy to Let loan your monthly rent should be at least 130% of your mortgage repayment, and give you an annual yield of more than 8% of the mortgage.
Choosing your Rental Property
The top landlords are those who do extensive research to find the right location with plenty of tenant demand. Make enquiries as a prospective tenant in the area - this will give you a real insight into potential rental income. The location can also affect whether you are going to offer a short-term or long-term let, for example, seaside locations are most popular in the summer months.
Top Rental Tips
Choose a property in a location:
with easy access to motorway
near to main train links
with regular bus routes
close to good primary and secondary schools
near to a university
within easy reach of a good shopping centre, or local shops
with high employment
in a mixed neighbourhood of owner occupied and rented properties
The property should have:
fitted kitchen
private bathroom
parking
good decor
if rented as 'part furnished', the carpets, curtains and furniture should be clean and in good condition
Finding a Buy to Let mortgage
Lenders tend to approve a buy to let loan on the expected rental income from the property, as opposed to the applicants' income. The mortgage company will also consider the location of the property and how comfortably the rent will cover the mortgage payments, and also the experience of the landlord. You need to be a homeowner and have a minimum 15% deposit.
When working out the figures for your Buy to Let loan your monthly rent should be at least 130% of your mortgage repayment, and give you an annual yield of more than 8% of the mortgage.
Choosing your Rental Property
The top landlords are those who do extensive research to find the right location with plenty of tenant demand. Make enquiries as a prospective tenant in the area - this will give you a real insight into potential rental income. The location can also affect whether you are going to offer a short-term or long-term let, for example, seaside locations are most popular in the summer months.
Top Rental Tips
Choose a property in a location:
with easy access to motorway
near to main train links
with regular bus routes
close to good primary and secondary schools
near to a university
within easy reach of a good shopping centre, or local shops
with high employment
in a mixed neighbourhood of owner occupied and rented properties
The property should have:
fitted kitchen
private bathroom
parking
good decor
if rented as 'part furnished', the carpets, curtains and furniture should be clean and in good condition
Related Tags: property, investment, loan, mortgage, let, capital, renting, rent, buy to let, letting, buy-to-let, become a landlord, top rental tips, tenant uk
Fiona Howard advises Loan-Loans-Mortgage one of the leading UK online sites for finding a fast personal Loan or Mortgage. She also specializes in buy to let, and uk property market trends. Your Article Search Directory : Find in Articles
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