×

Contact us today

Please enter your first name.
Please enter your surname.
Please enter your telephone number.
Please enter a valid email address.
Please provide some details about your enquiry.
 

Is Thanet An Ideal Place To Invest

If you are new to buy-to-let, what do you know about the market? Do you know the risks, as well as the benefits. Catch up with the latest news with a local buy-to-let agent.Where in your town has a special appeal?


Is Thanet an ideal place to invest?
Research the market

If you are new to buy-to-let, what do you know about the market? Do you know the risks, as well as the benefits. Catch up with the latest news with a local buy-to-let agent.

Make sure buy-to-let is the investment you want. Your money might be able to perform better elsewhere. In recent years a high-rate savings account would beat most investments. Now rates are lower, but investing in buy-to-let means tying up capital in a property that may fall in value.

This compares to the possibility of a 5% annual return from an income-based investment fund or 3 per cent on a fixed rate savings account.

Remember that the return from an investment in funds, shares or an investment trust through an Isa will see you paying just 10 per cent tax on income and getting capital growth tax free. You will also have the ability to sell up quickly if you want.
If you know someone who has entered the buy-to-let market, ask them about their experiences.

Choose a promising area

Promising does not mean most expensive or cheapest. Promising means a place where people would like to live and this can be for a variety of reasons.

Where in your town has a special appeal? If you are in a commuter belt, where has good transport? Where are the good schools for young families? Where do the students want to live?

Asking yourself these questions might sound over simplistic, but they are probably the most important aspect of a successful buy-to-let investment.

Do the maths

Before you think about looking around properties sit down with a pen and paper and write down the cost of houses you are looking at and the rent you are likely to get.

Buy-to-let lenders typically want rent to cover 125% of the mortgage repayments and many now demanding 25% deposits, or even larger, for rates considerably above residential mortgage deals. The best rate buy-to-let mortgages also come with large arrangement fees.

Once you have the mortgage rate and likely rent sorted, be clinical in deciding if your investment will work out. What will happen if the property sits empty for a month or two? These are all things to consider. Make sure you know how much the mortgage repayments will be and if it is a tracker allow for rates to rise.

Speak to Belvoir Thanet before deciding what to buy and where to buy in Thanet as they are the only specialised dedicated buy to let agent covering Thanet.

01843 293 293

Back to the blog

Related Posts