Invest in Buy-to-Let Properties: What You Should Know

Buying to let basically involves purchasing properties for the purpose of renting them out to people. This real estate investment practice has become quite popular, and for good reason. If you are interested in doing this, there are a number of things that you should know. You could end up making hundreds of thousands of pounds each year, but only if you take the right approach. It is never a good idea to get involved with this sort of things before you learn everything there is to know.

Do Enough Market Research

When you are just starting off the in the world of buy-to-let, you should make a point of doing as much market research as necessary. Look at each investment opportunity very closely to see if there is another property that you could get more out of. You should never choose to buy any type of property until you have looked at it from every angle. If you think you could do better with something else, you should move on.

Focus on the Location

It is also important to select properties that are in nice areas where people want to live. These properties tend to be more expensive, but they are usually good long-term investments. Look for areas where there are a lot of good schools, shopping, access to public transportation, and other things of that nature. Location is crucial when you are buying to let, so you need to consider this factor very carefully. You can buy a beautiful house, but it won’t earn you much of a profit if it’s in an undesirable area.

Getting the Cheapest Mortgages

Two-year fixed mortgages can offer you a cheap option that will allow you to save money while getting the investment property you want. Make sure that you stay aware of large fees with the mortgages you get though, as they can be overwhelming. A two-year fixed mortgage can come with over two thousand pounds in fees.

You will need to do some shopping around before you decide on a certain mortgage. Take the time to speak with some different lenders so you can find out what kind of interest rate you will get with each one. This research doesn’t that all that long, and it could save you thousands of pounds in the end. Also, consider hiring a professional broker so you can be sure that you’ll get the best possible mortgage.

Consider Your Ideal Tenants

When you are trying to make a decision on a property you wish to buy and rent out, you should consider the tenants you will be looking for. If you are planning to rent out to students, you should probably look places that are comfortable yet affordable. If young professionals are who you are after, maybe choose properties that are a bit higher-end and luxurious. You don’t want to choose any property that you’ll have a hard time getting the right tenants for.

Don’t get carried away with Your Greed

There is nothing wrong with wanting to make money from the properties you buy (it’s the whole point), but don’t get too greedy. You should instead focus on the long-term investment that you have made. You will have a difficult time keeping tenants if you charge too much. When you charge a reasonable amount, you will have a steady income for the long term.

Factor in the Maintenance

When you are trying to determine whether or not you should buy a property to rent out, you need to consider the maintenance. How much work does the property you are look into buying need done? It might not be worth it, depending on how old the property is. The older it is, the more money you will have to spend on upkeep over time. Newer properties cost more, but they also mean less maintenance in the long term.

Don’t Forget to Haggle

You should never accept any offer on any property before at least trying to do some haggling. Negotiation is a big part of the game, so you should get used to it. There is a very good chance that you can get the price down quite a bit if you are willing to negotiate a bit with the seller. It is a good idea to be fairly flexible so you don’t let your pride get in the way of a great overall deal.

Final Thoughts

Buying to let can be a wonderful type of investment, but there are many things to consider before getting started. When you actually do your research, you will be able to get a good deal on quality properties that you can make a lot of money on over the years. This is an excellent long-term investment, and it does require some measure of patience.

Mortgage Tips that Can Benefit Almost Anyone Over 50

Getting a good deal on a home loan can be tricky no matter how old you are, but those who are over 50 should heed some very specific advice. If you are approaching your golden years, this article will help you to buy a home without paying more than necessary. The fact is that the older you get, the harder it is to get a decent mortgage. A lot of lenders place age limits on borrowers, but there are some workarounds.

Extending Your Mortgage

If you already have a mortgage, it can be tempting to extend your term. This is commonly referred to as remortgaging, and it can be a good idea for some people. If you are able to successfully remortgage, you will have a lower monthly rate but will pay more in the long term. This is something that you should think about doing only if you are really struggling to make payments right now. Just keep in mind that you will spend more on your loan overall.


It is recommended that you try to pay more than the minimum on your mortgage each month so that you can pay it off faster. Not all mortgages allow for this, so you will want to check before trying to do it. When you are looking for a mortgage, make sure that you get one that allows overpaying. You might need to tighten up your belt for a little while, but you will save a lot of money in the long term. The sooner you pay off your home loan, the sooner you can stop worrying about making payments each month. It will be a huge weight off of your shoulders.

Getting a Mortgage Over 60

Once you are in your 60s, getting a mortgage can get especially tricky. Most lenders will limit borrowers to a term of 10-15 years, which isn’t really that bad depending on the cost of the house. A shorter term might look nice at first, but keep in mind that your monthly payments will be substantial. Make sure that you can afford a shorter term mortgage so that you don’t make a horrible mistake. You don’t want to take out a home loan only to discover later on that you can no longer make your payments.

Mortgages over 70

If you are over 70 years old, you will find that getting a home loan can be a real struggle. If you have a guarantor (someone who is willing to take over payment of the loan if you can no longer pay), your chances will be better. Just make sure that you spend enough time looking for a guarantor that is reliable so you can actually get approved. Sometimes even a guarantor won’t be enough to get a mortgage over 70, but it’s certainly worth a try. You will find that some lenders are more flexible than others, so it’s all a matter of doing your research.

Turn to a Credit Union

A credit union could really help you out if you want to get a mortgage but are having a hard time due to your age. These financial institutions have a history of being more relaxed when it comes to who they will lend money to. There is never any guarantee that you will get the money you need, but it’s worth looking into. Take some time to find a reputable credit union in your area so you can be sure that you’ll get the best deal possible.

Get Organized

The more organized you are when applying for a mortgage, the more likely you will be to get approved. If you are over 50 years old, it is particularly crucial that you have everything you need when applying. Lenders tend to look more favourably upon applicants who seem like they are organized and financially “together”. Make sure that you fill out an application loan to save yourself a lot of time.

Weigh the Risks

There is always risk involved in taking out a loan, so you need to weigh the risks before making a decision. Take a long hard look at your budget before you fill out any paperwork or submit an online application for a mortgage. The last thing you want is to get stuck in a situation where you are having your house repossessed by the bank.

If you have decided that you cannot afford a house, it’s not the end of the world. There are plenty of other options available, such as condominiums and apartments. You may have your heart set on a house, but you must decide if it’s a realistic goal. You should never trick yourself into making a bad financial decision, especially when it involves buying an entire house.