Buying property has always been a good investment in the United Kingdom, but the paramount rule of any real estate law of “location, location, and location” applies here too. Properties in London and neighbouring areas have been traditionally on the higher side, but rental income from these properties are also much higher than many other parts of the country.
Astute Investments
When the decision has been made to invest in London, the most important item on the agenda is finding a mortgage lender. However if you are planning to put in bids for more than one property, then selecting a specialist buy to let mortgage broker who is capable of putting together an acceptable deal is essential. The idea behind this proposal is to use the rental income from these properties to pay the mortgages, which means that the properties should be in demand and occupied all the time. Building up a large portfolio is something that needs to be discussed with a professional in the business, and a specialist broker with experience in arranging residential mortgages, remortgages, complex mortgages, holiday homes and bad credit mortgages would be ideal.
Mixed Portfolio
Investing in a property portfolio needs very careful consideration, because the real estate market is very fickle, and if the selected properties do not provide the required rent to pay the individual mortgages, then it could affect the owner’s financially. As any buy to let mortgage broker will explain, the first rule is remember individual financial limits, and keep within that budget at all times. It is important to do a comprehensive research about the properties, condition, locations, and surroundings.In addition to remembering the important rule of never making any decisions in haste. If high-end properties could not be found as per the budget, then selecting a few properties in low-end locations would not harm the portfolio, because rentals would still be good though on the lower side, but the value of the property will still appreciate.
Low Income Housing
Another source of income for landlords is to acquire buy to let mortgaged houses for tenants who receive Department of Social Services benefits or DSS tenants. Though it will not make the money that high-end properties make, DSS tenants will assure the landlord of a steady cash flow, because the demand is so high for this type of property. Finding a specialist broker who is willing to help the landlord in arranging the mortgage may be slightly more difficult, but there are many brokers who are willing to do exactly this. Again, proper research has to be done with the appropriate Social Service Departments about the rental arrangements and payments before agreeing to open up the property as low income housing.
Using the services of professional buy to let mortgage brokers with good contacts would be the number one priority for building a substantial property portfolio.
