Buy-to-let was previously thought of as a sound investment, but recent changes have made becoming a landlord a complex decision.
With an uncertain property market and recent tax changes, it is crucial to consider becoming a landlord carefully, and you may want to approach a CeMAP qualified mortgage advisor for some advice.
Now is a good time to invest in buy-to-let, as according to a report from the Nationwide Building Society, property prices fell during March, April and May, but in June, they rose slightly by 1.1%. This fall in price during those months represented the first fall in price since 2009, during the ‘credit crunch’.
Anyone considering becoming a landlord may want to wait until the outcome of Brexit is known, as economic uncertainty can create problems in the housing market. However, investment opportunities in affordable regions of the UK are being tipped to experience house price growth. Birmingham has experienced the largest growth rate during the past months, according to the UK Cities House Price Index, produced by Hometrack.
Stamp duty tax regulations have been changed by the government to include an extra 3% on additional homes or buy-to-let. This additional rate is payable on the whole of the house price. However, landlords should find that there is huge demand for rental properties, as more people find it harder to get onto the property ladder.
There are many factors to consider before investing in buy-to-let. Although property is an excellent investment in the long term, there are also extra costs to face. Speak to a professional before making a decision.
Posted by James
July 21, 2017
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