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Is Buy To Let Property Still A Good Investment?

download (8)For many people, buy to let properties have been a great financial investment recently in the UK. Leases are great, particularly in south east of the country and London, so the profit on buy to let properties has equally been high; and certainly something is gaining traders as there are now around 1.5 million buy to let mortgages in the UK, which amounts to 13 % of all house loans – a very important percentage. However, as with any financial commitment, buy to let is not without its disadvantages and earnings are often less than residence owners predict, especially new landlords who have perhaps under-estimated the additional costs engaged in having a residence.

There have been inconsistent reviews about whether this industry of the mortgage is enhancing or not, although there is still a generally organised viewpoint that the industry has enhanced since the start of the recession. Of course, as with any financial commitment in residence the way the investment is considered will have an impact on how well it will execute as an investment. Using property as a method to long-term financial commitment will generate better earnings than when used as a short-term investment when any property is more likely to be affected by temporary variations in value, which will have a knock-on impact on the realizable earnings. Lenders seem to believe that traders are now targeted on long-term earnings, when prior to the depression many buy to let traders were making money on the quickly increasing house prices to make quick investment benefits. But other information indicates that the earnings on buy to let investment strategies are dropping with regular lease earnings 2 – 3 % lower than they were pre-credit crisis. Although some difference in numbers indicates that some property owners still don’t succeed to take into account the allowing broker charges and other common costs such as maintenance.

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