Let us guide you through
At Primo Mortgages & Protection we understand purchasing a property as an investment can be stressful and requires professional and tailored advice.
We are on hand to navigate you through the property buying process whether this is the first investment property or if you are an experienced landlord, Primo Mortgages & Protection ensures each client receives the right advice and guidance for your circumstances.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Some Buy to Let Mortgages are not regulated by the Financial Conduct Authority.
Getting Started
Choosing the right mortgage is a crucial and often stressful decision. When looking for a buy to let mortgage, it’s important to consider what kind of property you are buying, how much you can afford and the potential rental income.
Considering the costs:
In addition to your mortgage payments there are other costs you will need to consider:
• Buildings insurance
• Contents insurance – if the property is furnished
• Maintenance costs
• Periods when you are receiving no rental income due to the property being vacant or tenants have fallen behind on their payments
• Increases in your mortgage repayments due to rises in interest’s rates which you might have to cover initially before you increase rental payments.
• The profits from a renting property are taxable but you may be able to offset some of the costs you incur against landlord tax.
• You will need to pay various axes such as income tax, stamp duty (when you purchase the property) and Capital Gains (when you sell the property)
Choosing your property
• Once you know what you can afford, you can begin your search for your next purchase.
• Before you purchase your next property, make sure you know what type of property you want to buy and where it will be located. The location of your buy to let property will determine who your tenants may be as well as its value.
• You need to research the area where you want to buy your property. You can either do this yourself or employ a specialist letting agent to help you. If you decide to do it yourself, it is a good idea to speak to local estate agents, employers and the local authority.
• Families will have different needs compared to couples and single people. If you are using an agent make sure you know the profile of the type of person that you wish to let your property to, at the same time you need to be mindful that the tighter you are with your requirements the longer it can take to find the right tenant.
• It is a good idea to consider where your property is based and whether this is a desirable area for tenants to live. Does it have facilities and links to public transport nearby? Are there schools, shops and other amenities?
• Consider the condition of the property you are looking to buy. A property that is well maintained and modernized will be in higher demand that one that needs improving.
Managing your property
When you have bought your property it now requires management. You can either manage the property yourself or speak to a Lettings agent to take care of things for you.
If you decide to manage the property yourself, you will be responsible for the following:
• Finding suitable tenants
• Checking tenants references
• Writing your tenancy agreement
• Collecting monthly rental payments
• Maintaining the property and any furniture included
• Resolving any issues with the property. E.g. problems with the electrics
• Carrying out any repairs
• Ensure the property is safe in regards to the gas and electric appliances
So, now you have an idea of what to expect when it comes to buy to let properties, get in touch to discuss your individual options.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Some Buy-to-Let mortgages are not regulated by the Financial Conduct Authority