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Potential landlords

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?