Advantages of Renting

Renting or buying is a sizzling debate in real estate world. Advocates of buying come up with their theories that most features famous lines such as “wasting money in rent”, “mortgage interest rate deduction”, “monthly payment tension” and “forced savings”. On the other hand advocates of renting will say that “Renting is cheaper on cash flow basis”, “higher mortgage rates than rental yields” etc.

For renters the benefits of home ownership are overestimated while the costs are underestimated. An owner has to worry about repairs, rates, painting, fixture upgrades, landscaping and more. They might be tax-deductible but commitment remains. Renters normally don’t have to pay or worry for any of this stuff. The other reason behind the renting way of lifestyle is that renters get to live in sensational places that never been in the market to buy. Buying an investment property makes sense only if where you want to live and where you want to invest doesn't correlate. Renting also increases at a more moderate rate. Another advantage of renting is that if you are buying an investment property while renting where you live offers more flexibility for when a new job or family member when time to shift . If a renter wants to divert to investment, whether in housing or other property sector then they have enough income left over after their rent. But renting isn’t for everyone. The inability to renovate and put a personal stamp on a place can be frustrating. When 12-monthrental agreements are a norm, renting can also mean having to move just when you’ve got settled. Renting is insecure as well as beneficial.

Buy-to-let Investment Tips

Buy to let is a remarkable income investment esp. in times of stock market instability. Whether you’re an established landlord or your first buy to let property, there are ten essential things to consider for a good investment.

Select the right property to let

Finding the right property requires efforts and time.  It also asks for critical local market understanding. Firstly figure out the type of property you are looking for; whether it is a house, office or a school building you should buy. The property you choose must be situated accordingly for example the house should be in a residential area with huge gardens and good schools, offices be in markets with good transportation facility etc. Buy in a market you understand.  

Do the math’s

Calculate the cost of the house and the rent you will likely get. Mostly buy-to-let buyers want 125% of mortgage repayment covering rent. Once you decide the mortgage rate and the likely rent you will get, decide again whether you want to go ahead or not.

Chosean agent

Being a landlord can be hard work. Tenant can calls you any time to sort out problem in the house. But you can hire a letting agent for this purpose. When hiring a letting agent you can either let only or full management. Let only is cheaper.

Let Only: This type of agent will advertise the property, find a tenant and collect the rent.

Full management: This agent will handle repairs and maintenance, chase unpaid rent and carry out inspections of the property.

Paying the Tax

Pay regular income tax on the rent you take like a good citizen. May costs tax deductible.