Buy to let investments in the private residential property sector continue to be extremely popular. Despite changes that may happen in legislation, they still attract high levels of growth – especially from first time landlords. In fact, the current market would suggest that now is the perfect time to wade into the sector for the first time.
Average mortgage rates are thought to be at the lowest they have been in years, which has resulted in the number of buy to let deals hitting the highest figure in seven years. Surprisingly, a lot of 18-39 year olds are deciding to invest in buy to let property, claiming that they believe it’s the best investment opportunity for them.
Did You Say A-Z?
As a leading letting specialist, Belvoir want to do everything they can to help out first time buyers. To do this, we have produced our own informative A-Z guide on the language of buy to let, including some professional and helpful tips. We hope that this glossary of key terms and issues will help future buy to let investors understand it a little bit easier.
We have picked out some of the important terms below.
Assured Shorthold Tenancy Agreement – This is a contract between tenant and landlord. Provides limited security of tenure and a right for the owner to take possession.
Capital Growth – This refers to the rate in which the value of a property increases over a certain amount of time.
Equity – This is the current market value of your property – less outstanding mortgage.
Net Rental Yield – This is the post-purpose calculation of the total rent received. It doesn’t include any expenses that the property incurs.
Rent Arrears – This is any payments that are made after the due date or after any services have already been provided.
Tenancy Deposit Schemes – All deposits that are taken by landlords, should be put in one of three government schemes. They can choose which one they want to use, as long as they do use one.
Wealth Management – This is something that is offered by a qualified financial advisor. It’s a service that helps landlords to look after all their personal finances, including insurances and finances related to their property portfolio.
Zero Mortgage Balance – Any investors that are looking to maximise income should be aiming to fully repay their mortgage as soon as possible.
We know that the buy to let property market is extremely profitable – especially for landlords who are organised and informed. This is why we want to help you make the best decisions when it comes to purchasing or letting property.
Whether you’re looking for advice on buy to let, or you just want information on property to rent in Sutton Coldfield, please don’t hesitate to contact us. You can give us a call on 0121 321 3388 and a member of our team will be happy to help.
