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Buy to Let
Over recent years there has been an explosion in the private rental market in Sheffield. Sheffield property has not only been attracting Yorkshire buyers but significant numbers of investors are buying from the rest of England and abroad.
One of the major contributing factors is the availability of finance for people purchasing a property to rent out following the Association of Rental Letting Agents launching buy to let.
Buy to Let mortgages are generally available up to 85% of the value of the property. However it is also extremely important that the proposed rental income is sufficient to cover the mortgage payments and leaves some to spare. Lenders look at this differently but on average they would expect the rental income to be 130% of the monthly mortgage payment. For example a £1000 monthly mortgage payment would need you to receive £1300 monthly rent. Remember the valuer may not be as optimistic as you when looking at the achievable rent.
Buying to let may seem like a great idea and very often it is, but you must think carefully when considering property investment.
Remember:
The value of your property could go down as well as up.
Mortgage payments are only part of the cost.
You may need to pay for repairs, on-going maintenance, service charges, insurance etc.
Your may get your property trashed!
You may not be able to find any tenants.
The income is taxable.
The first thing you should consider is why I am buying a property . Just because your friends have is not a good reason. Are you thinking of saving for retirement, supplementing your income, or creating a budding property empire. We can help you formulate a plan and spread the risk of your investment
Depending on your plan Simplicity can help you with a whole range of property investment. Services offered
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