Despite changes to taxes and regulations, buy to let property remains incredibly popular, especially in the UK where property prices and yields stay relatively strong and stable with reasonable and reliable growth.
Where to invest in property
As it currently stands the East Midlands and North West are the runaway leaders in terms of property price growth and yields. According to the latest Totally Money survey which looks at over half a million properties across the UK, cities like Nottingham, Manchester, Leeds and the North East are currently offering the best yields ranging from 7% to 11.99%.
Depending on your tastes, city centres are usually good places to start and off-plan properties are currently offering some of the best returns. Cities such as Manchester and Sheffield are experiencing high levels of demand for a small pool of available homes, meaning that rental income is impressive whilst the value of the property increases with it.
Suburban properties can be good for long-term investment but bear in mind that price growth is likely to be slower in general outside city centres.
Get a good mortgage
Whilst you may well have your deposit together, and a good idea of where you’d like to invest in buy to let property, it’s still important that you ensure you’re shopping around for the best mortgage and getting the best rate. Whilst rates are low, there is a good amount of competition around so it doesn’t make sense to just go for the first mortgage that you see, it is worth getting independent advice too if you can.
If you shop around and manage to get a mortgage that is low rate for the longest possible time it can make a huge difference. Just a 0.5% variance on your mortgage rate can make all the difference on a £125,000 property for example.
Speak to your bank first and foremost but also get yourself online and crunch the numbers to ensure you’re getting a good deal and that you’re going to be better off with the lender you intend to go with.
Are you looking for advice on how to invest in buy to let property? Why not get in touch with Knight Knox today and start building your property portfolio!