let

The term Buy to Let, or BTL, refers to a form of long-term residential investment whereby a person buys a property with the intention of renting it out. This strategy has become an increasingly popular means of achieving financial security and independence and continues to show considerable potential as an investment.

In today’s economic climate, property is seen by many as a safer choice than other investments. This is because property offers a tangible item, one that the owner can not only physically possess, but which can also change in value over time. Also, it is a far quicker way to access capital than other forms of investment.

Another notable plus for buy to let investors is the potential of securing a steady income. The rental income generated can be used to cover the mortgage payments, as well as upkeep and other services. This can, in turn, allow an investor to build up a secure savings fund for their retirement.

When it comes to taxation, buy to let investors are in a strong position. This is due to the tax relief offered on mortgage interest payments. This exemption can result in an effective reduction in the amount of money an investor is required to pay in tax.

Additionally, landlords are now able to benefit from a basic 10% rate of relief on repairs and improvements undertaken to their rental property. This combination of tax reliefs makes the prospect of a buy to let much more appealing to potential investors.

Lastly, property investment can offer considerable opportunities for capital growth; a buy to let investor may be able to increase their profits by increasing rental or having their property’s value appreciate.

In conclusion, there is no doubt that Buy to Let can offer a long-term, secure and potentially lucrative form of investment. Property can be less volatile than other investments, and the potential tax reliefs are extremely attractive. Therefore, it is no surprise that so many people are entering the buy to let market.