Marketed by Bridgfords for £125,000 is this one bedroom lower ground floor flat which could be an ideal buy to let investment. Priced lower than similar properties in upper floor positions, you could expect to achieve £600pcm for the flat giving a 5.7% yield. Located literally around the corner from the Burton Road Metrolink and West Didsbury village this property is sure to be popular with a young professional tenant.
Renting a property isn’t as simple as purchasing the property and letting it out, you need to ensure the property is maintained and that you set money aside to cover these expenses. Although lenders will typically require the rental income of your investment property to be at least 125% of your mortgage payment amount, this doesn’t always mean that the property will generate positive cash flow or give sufficient net profit to cover all the expenses of maintaining the rented property over the typical 15 to 20-year ownership.
As well as regular and one-off maintenance expenses, allowances need to be made for times when there may be no rental income. Tenants may stop paying their rent and the property is sometimes empty between tenancies, and you still need to be able to cover the mortgage and other costs during this time.
It is therefore vital that you budget properly to ensure that the investment is worthwhile and not going to cost you money month-on-month, before you commit to buying a property to let.
Marketed by Jordan Fishwick for £145,000 is this very well priced, two bedroom flat on the West Disbury/Withington border. With an expected rental of £750pcm, giving a yield of just over 6% this flat is well worth considering as your next investment property.
The relationship between rental income and the amount you can borrow to finance your investment is one of the most important.
One of the first checks lenders make when you apply for a buy-to-let mortgage is whether the rental income is high enough to cover the repayments and associated costs of letting the property.
Although it can vary, lenders usually want rental income to be 125-130 per cent of the amount you repay on the mortgage each month. Knowing this, it makes sense for you to check these figures for yourself, before you apply, by following these steps: