How to make buy-to-let investments profitable

Contact Us


House-Sale

According to Mollie Milman, writing on the website SimplyBusiness.co.uk in May 2017, there are three reasons why it can still be profitable to invest in buy-to-let property:

1. Low interest rates

With the Bank of England base rate low, and fierce competition between mortgage lenders, the interest rates for commercial mortgages for buy-to-let properties are at record low rates.

2. Demand by tenants

Many people want to purchase their own home but are finding it difficult to save up for a deposit. It can take them a long time to accumulate the deposit money and the other expenses needed to buy a home, meaning they are forced to stay longer in rented property. This is one reason why there is a high demand for rental accommodation.

3. Rental yields

Rental yields are a measure of how much rent a property receives in comparison to its value. It is much more profitable to invest in buy-to-let property in some regions than others.

The website, TotallyMoney.com, in its 2017 survey, found that some properties in the Liverpool L7 area can generate rental yields of 16.7%. These are much higher than some London boroughs with average yields of 5.5%. Poole in Dorset was the worst performing region at 1.4%.

Investing in buy-to-let property can be challenging. Buying property in areas with high demand for rented accommodation, high rents and reasonable property prices can generate good profits. A mortgage broker can source a low interest commercial mortgage for buy-to-let investors.

How to make buy-to-let investments profitable

Find exactly the right mortgage for you with a free mortgage consultation

[bsf-info-box icon="Defaults-check" icon_size="32" icon_color="#ffffff" title="Free initial consultation"][/bsf-info-box][bsf-info-box icon="Defaults-check" icon_size="32" icon_color="#ffffff" title="No obligation" el_class="white"][/bsf-info-box]

[fc id='3'][/fc]

According to Mollie Milman, writing on the website SimplyBusiness.co.uk in May 2017, there are three reasons why it can still be profitable to invest in buy-to-let property:

1. Low interest rates

With the Bank of England base rate low, and fierce competition between mortgage lenders, the interest rates for commercial mortgages for buy-to-let properties are at record low rates.

2. Demand by tenants

Many people want to purchase their own home but are finding it difficult to save up for a deposit. It can take them a long time to accumulate the deposit money and the other expenses needed to buy a home, meaning they are forced to stay longer in rented property. This is one reason why there is a high demand for rental accommodation.

3. Rental yields

Rental yields are a measure of how much rent a property receives in comparison to its value. It is much more profitable to invest in buy-to-let property in some regions than others.

The website, TotallyMoney.com, in its 2017 survey, found that some properties in the Liverpool L7 area can generate rental yields of 16.7%. These are much higher than some London boroughs with average yields of 5.5%. Poole in Dorset was the worst performing region at 1.4%.

Investing in buy-to-let property can be challenging. Buying property in areas with high demand for rented accommodation, high rents and reasonable property prices can generate good profits. A mortgage broker can source a low interest commercial mortgage for buy-to-let investors.

[templatera id="5896"][interactive_banner_2 banner_title="Mortgages" banner_image="id^6029|url^https://ascotmortgages.co.uk/wp-content/uploads/2019/09/m1.jpg|caption^null|alt^null|title^m1|description^null" banner_link="url:https%3A%2F%2Fascotmortgages.co.uk%2Fmortgages%2F|title:Mortgages||" banner_style="style2" el_class="lifebanners" image_opacity="1" image_opacity_on_hover="1"][interactive_banner_2 banner_title="Bridging Finance" banner_image="id^6027|url^https://ascotmortgages.co.uk/wp-content/uploads/2019/09/b3.jpg|caption^null|alt^null|title^null|description^null" banner_link="url:https%3A%2F%2Fascotmortgages.co.uk%2Fbridging-finance%2F|title:Bridging%20Finance||" banner_style="style2" el_class="lifebanners" image_opacity="1" image_opacity_on_hover="1"][interactive_banner_2 banner_title="Equity Release" banner_image="id^6030|url^https://ascotmortgages.co.uk/wp-content/uploads/2019/09/m2.jpg|caption^null|alt^null|title^m2|description^null" banner_link="url:https%3A%2F%2Fascotmortgages.co.uk%2Fequity-release%2F|title:Equity%20Release%20||" banner_style="style2" el_class="lifebanners" image_opacity="1" image_opacity_on_hover="1"][interactive_banner_2 banner_title="Life Insurance" banner_image="id^6028|url^https://ascotmortgages.co.uk/wp-content/uploads/2019/09/b4.jpg|caption^null|alt^null|title^ |description^null" banner_link="url:https%3A%2F%2Fascotmortgages.co.uk%2Finsurance%2Fmortgage-life-insurance-cover%2F|title:Life%20Insurance||" banner_style="style2" el_class="lifebanners" image_opacity="1" image_opacity_on_hover="1"][interactive_banner_2 banner_title="Test" banner_image="id^6671|url^https://ascotmortgages.co.uk/wp-content/uploads/2019/09/er.jpg|caption^null|alt^null|title^null|description^null" banner_link="url:%23|title:Test||" banner_style="style2" el_class="lifebanners hide" image_opacity="1" image_opacity_on_hover="1"]

Contact Us