Buy to let properties are still a good investment opportunity, especially in this era of low interest rates, volatility in the stock market and rising house prices. For many people property is an investment asset they understand, something they have brought and sold many times themselves and the obvious way to invest for the future.
With sweeping reforms to the pension market now in place many over 55s will be considering cashing in their pot and using this to fund a property purchase. However there are pitfalls along the way, but these can be reduced by doing your homework and taking the right advice. Some of the things you will need to consider are the legal and tax implications of owning a property, where do you buy and what sort of property should you buy? Do you use all of your capital or should you spread your capital and utilise the low rate buy to let mortgages on offer? These are all questions you will need to consider if you want to develop a successful investment.
Once you have found a property you then need to consider how you are going to manage the property, keeping up with changes in legislation, insuring the property, maintaining and servicing the fabric and services of the building. Most investors use a lettings agent to find and manage the tenancy for them, but with so many around how do you know you are choosing the right one. Choose an agent registered with a professional body. ARLA (Association of Residential Lettings Agents) is the UK’s foremost professional body for letting agents. They believe letting agents should be licensed to practice, both to protect you the consumer and to encourage and maintain high standards of customer service and knowledge.
As with all investments, you need to work out what is right for you as no two investor strategies will ever be identical. Take plenty of advice, go in with your eyes open and property can still provide an excellent income.