Buy to let is becoming an increasingly popular choice for people wishing to make an investment and purchase a property to let out. This is a useful way to make some money, as well as being a retirement fund, or a home to pass on to children when they grow up. Since 2015, the rules with pensions changed, allowing the full amount to be taken as a cash lump sum, which meant many more people opted to invest in the property market.
Here are a few of the pros and cons of owning a buy to let property, if it is something that you are weighing up for the future…
Starting with the cons
Sometimes you may have periods of time where the property has nobody living there. During this time, you will not be collecting any rent, but will still have to pay for the upkeep of the property.
You will have to ensure that the property is well maintained and things that you must legally comply with, such as gas safety checks are completed. Some tasks can be done yourself, but others you may have to get a professional to come in, for example when it comes to gas or electrics. An electric meter box is a good way to ensure that large electricity bills cannot be run up[ whilst nobody is in the house – you can get one from https://www.meterbox.co.uk/electric-meter-boxes
Here are the Pros
A house provides you with a regular income, as well as the fact that the actual value of the property will increase over time also.
A bricks and mortar asset can be safer than an investment in the stock market for example – owning a house is the less risky option
If you have children it is something that you can pass down to them, especially as the housing market is getting more difficult for younger people to access