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Matters to consider before investing in a property


The Private  Rented  Sector  [PRS] is expanding and Buy- to-Let mortgages allow property investors to acquire a mortgage to purchase a property to let out, with rental income covering mortgage repayments. If you are thinking about purchasing a property to let out, you should consider the benefits very carefully.
Some of the matters you should consider are:

The demand for rented accommodation in the area in which you are considering investing. In many areas, including popular inner city locations, there may be an oversupply of rented accommodation and therefore it could be difficult to rent the property out
The achievable rent and the amount you would need to charge to cover your mortgage and other outgoing costs
The profit margins
All costs like repairs and letting  expenses - advertising and professional fees
How much of the year you can afford to have the property  vacant. Every landlord  should allow  for about a seven per cent void rate for vacancies or turnaround times between occupants
The ability to pay your mortgage if the tenant stops paying their rent or you have an unexpectedly large repair bill
The sort of market you will be entering.  Each has its own characteristics and particular benefits and problems
The potential investment return. You need to be realistic about the returns you will achieve. It is more realistic to expect lower short-term gains and higher long-term profits
Your degree of experience managing properties and tenancies. The knowledge  and skills needed to be a landlord are considerable.

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