BUY TO LET 

Buy-to-let has seen a resurgence in recent times.

As an income investment for those with enough money to raise a big deposit buy-to-let looks attractive, especially compared to low savings rates and stock market swings.

Meanwhile, the property market bouncing back has encouraged more investors to snap up property in the hope of its value rising.

Mortgage rates at record lows are helping buy-to-let investors make deals stack up.

But beware low rates. One day they must rise and you need to know your investment can stand that test.

There is also a tax rise coming, as buy-to-let mortgage interest relief is axed and replaced with a 20 per cent tax credit.  Additionally, from April 2016 landlords now have to pay an extra 3% stamp duty on property purchases. 

Recent history provides an important lesson in how returns can be hit. Many investors who bought in the boom years before 2007 struggled as mortgage rates rose. A sizeable number were thrown a lifeline when the base rate was slashed to 0.5 per cent. Rates have stuck there since 2008, but remember they will rise again.

Yet despite the tax changes and potential for mortgage costs to rise, greater demand from tenants, rents that should rise with inflation and the long horizon for interest rate rises, mean many investors are still tempted by buy-to-let.  

Looking in M20 / M14 here are some great examples of what JP & Brimelow have for sale in this competitive market. With over 20 years experience of selling Investment property in South Manchester we can offer expert advise on the do's and do not's of investing in property , whether to be used as an income or as a pension plan. 

Why not talk to one of the experienced professionals at our Withington office to discuss your options. 

Sales: 0161 445 9700