Expanding your property portfolio can help increase your financial security — but is now a good time to buy to let?
As house prices start to fall and rents rise across the UK, 2023 may look like a good year to get your foot on the investment property ladder. However, making that decision is far from straightforward.
While a buy-to-let investment strategy can provide you with a regular rental income, it also comes with additional costs and responsibilities.
Recent economic factors such as soaring mortgage rates and reduced tax relief could also negatively impact your profits as a landlord, so it’s essential to weigh up your options carefully.
In this article, we’ll discuss the pros and cons of investing in buy to let in 2023.
What is buy-to-let?
A buy-to-let is a property bought for the purpose of renting it to tenants. You’ll usually need to get a buy-to-let mortgage if you intend to receive rental income from a residential property — unless you purchase it outright.
While these mortgages usually come with higher upfront costs, they are often interest-only. This means your monthly instalments will only pay off the interest on the loan, so you won’t need to settle the full sum until the end of your mortgage period.
Talk to us about your buy to let options.
