Property, whether commercial or residential, is generally considered a long-term investment and there are signs that buy-to-let investors are returning to the market. The recession of 2008/09 saw many buy-to-let investors bale out of the market. The reduction in property values resulted in a less than buoyant rental market and has caused many to rue their investment plan.
However, returns have improved and many now see the current state of the market as a buying opportunity, but only the very brave are venturing to acquire property as an investment. ‘Buy-to-let’ mortgages may generally be available to fund as much as 75% of the cost or property valuation, whichever is the lower.
Those investing in property seek a gross return that covers all outgoings and a net return from rent which is greater than the interest that could be gained on deposit while the risk of the investment is weighed against the prospect of capital growth.
However advice on any property investment is always an area where advice is essential.