Potential Landlord

Buying to let

The main drivers for the Buy to Let have been:

• Long term investment portfolio planning (relatively low risk investment with favourable yield)
• Windfall or inheritance
• Those unable to sell an existing property, so let
• Need to purchase a home for a child at university or an elderly parent
• A desire to supplement or supplant existing income
• Generate a regular monthly income stream

But many when entering the market fail to consider the drawbacks, such as:

• Initials costs of preparing the property for let
• The legal obligations and failure to comply with regulations can have financial implications and in extreme cases result in imprisonment
• The cost of finding tenants
• Time and effort spent in dealing with tenants
• Periods of time when the property is not let
• Costs of ongoing maintenance of the property
• Any rental profit made is taxable
• The possibility of falling property prices leading to a supply of rental properties in the market which results in a reduction of rents

Property can be both challenging and financially rewarding, is being a landlord right for you?