| Home | Free Articles for Your Site | Submit an Article | Advertise | Link to Us | Search | Contact Us |
This site is an archive of old articles

    SEARCH ARTICLES


vertical line

Article Surfing Archive


Smart Buy To Let Investing - Articles Surfing

Many property investors are looking to the buy-to-let market as a viable option for their property investment portfolios. In the past, most investors looked to markets like Brazil where they could buy a property and wait for ten years, then sell it for a big profit. The rental was only an interim solution. Only large property management companies worried about he buy-to-let market.

The current crash in the US sub prime market, and the surge in the UK buy-to-let market have made many small time investors consider the rental option as a viable option.

There are a few benefits to buy-to-let over buy-and-sell property portfolios. The first is that you do not need to trust a foreign realtor or agent, and you do not need to travel around the globe hunting for a promising property.

The financial market has made the buy-to-let market more attractive. There are now more than 4000 financial products that let investors mortgage for longer periods, up to 40 years, or mortgage out more equity, up to 130% of the home's value.

An investor can realistically turn twenty-thousand dollars and build a fortune in equity. This type of investing is most attractive to the 30 something investors.

The buy-to-let market is an easy way to build wealth. The rentals are the profit, not the property sale. This means that a dozen prime properties, in good neighborhoods will continue to produce wealth for twenty to fifty years.

The investor does not need to keep looking for properties to sell, or work with foreign governments and currencies. They can stay close to home, in a familiar market.

A smart landlord can build a million dollar portfolio in a year if they follow a few rules.

It is not the best move to buy at the bottom or top of the market.

The first move involve calculate all costs before deciding how much mortgage the property can support. Remember, you cannot board up the property on low heat for 5 years waiting for a property boom.
Tenants have rights, do damage, and cause wear and tear on the property. The goal is to buy in neighborhoods that are close to work, with good schools, and convenient shopping. Any of these factors can have a dramatic effect on the property's rent.

Tenants will look at the school's success rate, even a drop in a few points, can make a property difficult to rent. In respect, an increase of a few points can add a couple hundred dollars to the rent.

Rents must cover the rent, improvements, and taxes. However, it must also cover unpaid rents, damages, legal fees, and vacancies.

Buy-to-let is a viable investment strategy that does work. Most experienced landlords claim that it takes 20 years to build real wealth. Landlords must be willing to invest 25 years into their portfolios.

Their wealth traditionally came from selling the portfolio to another landlord, or a property management corporation. Today's investors are preparing to earn the value of a property before the mortgage is paid, doubling the profit margins, and reducing the risk.

Submitted by:

Mark Walters

Mark Walters is a third generation entrepreneur and author. He offers free training and investing videos designed to speed you towards financial independence at http://www.cashflowinstitute.com/videosignup.htm


        RELATED SITES



https://articlesurfing.org/real_estate/smart_buy_to_let_investing.html

Copyright © 1995 - 2024 Photius Coutsoukis (All Rights Reserved).

ARTICLE CATEGORIES

Aging
Arts and Crafts
Auto and Trucks
Automotive
Business
Business and Finance
Cancer Survival
Career
Classifieds
Computers and Internet
Computers and Technology
Cooking
Culture
Education
Education #2
Entertainment
Etiquette
Family
Finances
Food and Drink
Food and Drink B
Gadgets and Gizmos
Gardening
Health
Hobbies
Home Improvement
Home Management
Humor
Internet
Jobs
Kids and Teens
Learning Languages
Leadership
Legal
Legal B
Marketing
Marketing B
Medical Business
Medicines and Remedies
Music and Movies
Online Business
Opinions
Parenting
Parenting B
Pets
Pets and Animals
Poetry
Politics
Politics and Government
Real Estate
Recreation
Recreation and Sports
Science
Self Help
Self Improvement
Short Stories
Site Promotion
Society
Sports
Travel and Leisure
Travel Part B
Web Development
Wellness, Fitness and Diet
World Affairs
Writing
Writing B