Buyers
Buy to Let
What is a Buy-to-Let property?
A Buy-to-Let property is an income-producing residential investment
A Buy-to-Let property is an income-producing residential investment, with potential for making a capital gain when the property is sold.
An investor buys a property either off-plan or immediately available and makes money on their investment by renting out the property in the short term, with the long term goal of making a profit on the property when they eventually sell it.
Considerations when making a Buy-to-Let Investment
There are two key factors to look for when making a Buy-to-Let purchase in order to achieve maximum value on your investment.
Invest in a promising area that:
- Holds good potential for capital growth.
- Contains a strong rental catchment – particularly commuter zones with excellent transport connections, amenities and educational facilities.
Princess Park Estates have identified the best locations for return on investment as regenerating areas.
Here at Princess Park Estates we have built our reputation on acquiring sites in London areas where there was little or no development, unlocking the potential for our investors to attain huge capital growth by joining us in these yet to be regenerated locations.
Advantages of a Buy-to-Let investment?
You can earn income while your property is increasing in value.
London's rental market is booming; there is an ever growing demand for rental property due to population growth and affordability constraints in the housing market.
There are now 4.8 million people renting in Britain, compared to 2.5 million 10 years ago.
Rents are rising due to disproportionate supply vs demand for London property.
Princess Park Estates have a proven track record of building in 'regenerating' areas which hold huge potential for capital growth.
Just like any investment, there is risk involved; however, house prices have a pretty good habit of continually increasing in value, even through times of economic downturn.
It is important that you research the market prior to committing to any investment strategy. In terms of buy-to-let, this includes calculating affordability and making a contingency plan for any outgoings which this type of investment may incur, for example mortgage payments and property maintenance / repairs.
Even if you have chosen the most popular area of London to purchase your buy-to-let property, there may be periods where your property is empty. You will need to contingency plan for times like this, and also unexpected costs such as repairs or a new boiler.
Lastly shop around for your mortgage provider and consider seeking advice from a specialist buy-to-let broker in order to secure the best deals.
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