06/23/2011
By: Callum Leslie Walters
In today's economy the real estate industry has become a buyer's market. This presents a great opportunity for first time home buyers to make their first purchase and many of them are. However, many of these buyers are actually not moving into the homes. Instead they are using a buy to let strategy where their home is rented out and they live elsewhere. With a little research, this presents a great opportunity for advancement over the long term
When it comes to a buy to let situation, you must understand that it is all about saving money. While you can take the initiative to put a decent amount down on the property, you will also find that you are able to save money and not have to put down a deposit to rent. This will lower your monthly payments, and you can make it back with the amount that you charge for rent, and then some. A good property can be a solid investment.
If you decide to look for property in an area you aren't familiar with, it is important to take time to research the area. The best way to do this is to actually go and inspect the area yourself. When doing this makes sure that it is an area that is good for rental properties. To do this check to see if there are any colleges nearby and look in the local paper to see what properties are going for.
Finally, you will have to understand the hidden costs involved in a buy to let mortgage. Along with your monthly mortgage payment, you will have to maintain insurance on the home. There will also be costs of refurbishing between tenants, but this can often be covered with an adequate deposit. Maintenance will also be required because things will break and malfunction over time and there is the possibility of lulls between tenants. Make sure you are prepared for these things.
Remember when it comes to a first time purchase for a buy to let home, you have to do your research ahead of time. You will need to weigh the benefits with the risks to see if it is a risk worth taking. This will depend a lot on the property. Most people that decide this is right for them, like the fact that they are able to build their credit while still making money on the side at the same time.
C.J.F. & Associates has made this information available, and we hope it has helped you! If you need cash for a Privately held Real estate note, Structured settlement, Annuity, or Structured Lottery payments, call us at 1-800-908-9312 or go to our website at www.cash4you123.com for more information.
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