Investing in property: an overview

Buy to let

Buy to Let

If you aren’t convinced by the property investment fund, here’s a closer look at the buy to let market. Although there are additional fees when buying a house, when the market is going strong the potential for returns can be attractive. Property owner Peter Cannell from Edinburgh saw the value of his properties doubling in less than a decade; ‘I bought a two-bedroom flat for £50,000 in 1998 and by 2004 it was worth £120,000’. The key to making a good profit is purchasing a rentable property, if you choose the wrong property you could face long periods of rental void, a decrease in the property value and may even find it difficult to sell. The average rate of return on buy to let properties in the UK is about 6.45% currently. However demand is changing, due to social and demographic trends. People are waiting longer before buying their first house, and so renting for longer. According to Mortgage Express the demand for rental properties is expected to increase over the next ten years by around 3% a year.