You are looking to invest in a buy-to-let property because you want to make a profit; this comes mainly from rental income and capital growth. That is to say, the more money coming in than going out, the better. Simply put, to do this, it’s vital that the property generates more income than it produces in costs, sometimes expressed as the Rate of Income (ROI) or yield.
Let’s look at some of the costs involved with buy-to-let property investments to give an idea of the sort of costs that investors can expect to incur.
The biggest expenses you will have been likely to face are the mortgage repayments. Depending on what type of mortgage you opt for, the repayments are easy to gauge, and you can know what they will be with a degree of certainty. Interest-only mortgage payments will be a lot less than capital repayment monthly payments. … Read more