Advantages And Disadvantages Of Buy To Let Property Investment
Housing-Market / Buy to Let Apr 23, 2015 - 04:51 PM GMTBy: Boris_Dzhingarov
Although there is still a crisis that is visible when referring to the housing market all around the world, money can still be made in this industry. The houses do not sell, usually because of the fact that many cannot actually afford the costs. Living costs are high and families are currently focused on rented housing. For the renters, the situation is not that great since there is not a high supply available for properties that can be rented. However, this is a good thing for the investors, according to what was mentioned by dzhingarov.com: real estate investors can take advantage of buy to let properties in order to get a guaranteed profit on the long run.
If you are careful and you analyze the entire real estate market, you will notice that those that are younger do not really have access to enough savings in order to afford such a large purchase. You can easily notice this in England and Wales with property prices growing in March. Obviously, this situation means that a lot of money will be made by the investor that is now focused on such buy to let property investments.
Advantages Of Buy To Let Rental Property Investment
You get a ROI average for such properties of around 8 percent. This is definitely higher than what the regular savings account offers so you have to take this into account. More can be gained in the event that you do make a great investment. As you have tenants that are reliable inside the properties, hassle free income comes in on a regular basis.
If there is a need to release capital, the properties can simply be sold, sometimes at higher amounts than what you initially paid. Such investment properties are really good in order to get retirement income and the property does normally appreciate as time passes. You will get more profit as more time passes.
Disadvantages Of Buy To Let Rental Property Investment
In order to get the properties ready for letting, you may have to invest some money. This is something that many do not consider. At the same time, we do have various regulations that have to be respected. The law needs to be respected so that you do not end up with some really high fines or even jail.
Keep in mind that some of the tenants are not actually great community members. There are some that can damage rental homes and this automatically means that you will have some problems. Local conflicts can appear and that brings in so many headaches for the landlord.
We have to understand that sometimes there are void periods, which means that properties are empty. Cash flow problems can appear. This is really important in the event that mortgages need to be paid. Extra costs for the landlord appear as appliances will be serviced and the repairs have to be taken as soon as possible. Sometimes the landlord even needs to take out a cash loan.
By Boris Dzhingarov
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