Understand how to minimise costs and reduce your risks when becoming a landlord
Property – it’s one of Britain’s best-loved investments. A pension plan for many, it provides the benefit of regular rental income, as well as capital growth in the long run, providing an ultimate pay-off after years of monthly payments when sold.
But like any financial asset, it carries risk.
You need to factor in costs such as maintenance, repairs, insurance, tax and other fees – as well as void periods.
Buy-to-let investors also need to be aware that recent changes to the tax rules, along with a stamp duty surcharge on the purchase of additional homes, and new legislation on the energy efficiency of newly let properties, could all push up costs – not to mention add extra red tape.