Reasons to Invest in Buy-to-Let

Over the last few years, property investments have become increasingly popular. Buy-to-let can be an excellent long term investment; in this blog, we look at some of its benefits for you and your money.

As the name suggests, buy-to-let is the purchase of a property with the aim of letting or renting it out to tenants. A buy-to-let property purchase has similarities but also distinctive differences from a traditional property purchase. When you buy-to-let, you take on a range of different responsibilities. However, buy-to-let is also an increasingly popular investment with good medium to long-term potential.

The immediate gains of buy-to-let investments are often small in comparison to other options. However, if you’re not after a quick boost and prefer a long-term benefit, property is a great choice. It’s a fair assumption that, over the next ten years, property prices will increase. It’s also likely that current rent charges will increase over the coming decade. As a long-term investment, few options offer the stability and consistency of buy-to-let.

Another benefit of investing in buy-to-let is the long-term opportunities it provides. While it can be hard to access money tied into a property, having another home available can prove incredibly useful if another residential property is required. It is possible to remortgage a buy-to-let investment into a residential mortgage, which can be beneficial for families if, for example, a child grows up and needs to move out.

As with any monetary investment, there are many things you should consider before purchasing a property. Firstly, property is a significant investment, so make sure you have the required capital. If you’re obtaining a buy-to-let mortgage, consider that you’ll need to keep up repayments, even when the property is tenantless. Buy-to-let is a long-term investment. With significant upfront costs, you might make a loss in the short term, so ensure you have the liquid capital to absorb these additional costs. Additionally, when you rent out a property, you are taking on a range of additional responsibilities. Consider the potential time and monetary costs associated with owning rented property and ensure you have the resources required.

Whether a buy-to-let investment is suitable for you is mainly dependent on what you require from your investments. If you’re looking for a short-term investment with quick returns, other investments are more suited. However, if you are looking for a more secure investment with long-term return potential, buy-to-let is an excellent option. Here at Farnham Conveyancing, we offer a dedicated buy-to-let conveyancing service, which can help make the process of becoming a landlord as smooth as possible. If you want to know how we can help you, contact us today.