Buy to let investment: what you need to know

Investing in property in the UK is a huge investment of time and money, and though it can be extremely profitable, there are serious risks. By knowing exactly what to look out for, you can reduce the level of risk and ensure your buy to let investment is one that’s going to keep making you money.

Your options

Crowdfunding

Crowdfunding is a great solution for those who want to invest without the burden of marketing a property yourself and finding a tenant. Crowdfunding platforms will do all the work for you and also take care of the legal process. By investing a smaller amount of money, you’ll own a stake in a property that will be let out, and from which you’ll receive a monthly payment.

Traditional investment

Investing in property (UK) by getting a mortgage on a property and then letting it to tenants gives you ultimate control over your buy to let investment. You’ll be able to choose your tenants but this will give you additional responsibilities. This includes maintenance on the property, such as roofing, redecoration or reinstalling plumbing and heating systems.

The risks

Investing in property in the UK can be very rewarding, but the risks involved mean you must carefully consider them before making any buy to let investment.

Loss of Capital

The housing market, especially in the UK, is unpredictable, with housing prices dipping and rising all the time. This makes any buy to let investment a risk. You can reduce your level of risk by carefully researching your intended properties and choosing the right area and property type for your investment. You should never invest more in a buy to let investment than you can afford to lose.

Tax

You will be responsible for paying your own tax, which means you’ll need to file your tax returns by the deadline. It’s always wise to seek professional advice before investing in property (UK) by going to an accountant or your local government.

Buy to let investment is a brilliant way of earning money on a regular basis but it should never be counted on as a long term, permanent form of income. By doing your research and staying on top of current property market trends you can help increase your chance of making a profit from your property investment and decrease your chances of losing capital.

Investment in property comes with risks as well as the possibility of rewards.

For more information visit here https://www.crowdlords.com/content/full-risk-disclosure