Maximising buy-to-let

If you are currently wondering where to invest your savings for a decent return when even some experts are suggesting that stuffing your money under the mattress could be the best bet, then one option of maximising returns that you might consider is the purchase of a buy-to-let property.

As a property investment consultancy operating in London and the South East we provide a personal and expert service to landlords and potential investors and offer impartial advice to help clients in maximising their returns on buy-to-let investments.

Typical clients include first time investors who are interested in starting a property portfolio but are not confident about how to go about it, how to raise the finance, where to invest and what sort of property to buy.

As buy-to-let investing is not right for everybody it is important to understand the pitfalls as well as the benefits.  Certainly it should be viewed as a long-term investment which will provide a good, regular profit if undertaken correctly but is also relatively illiquid in that the only asset is the property which may not sell quickly or profitably in poor market conditions.

Some clients come to us because they have received a windfall payment, such as a legacy, and are considering ploughing the money into property as a “safe” investment.

Such clients often assume that they should invest the whole amount into one property as a cash investment and this may be the best course of action but they might be better off examining other alternatives thereby maximising their overall return.

For example, a lump sum legacy of say £200,000 could be used for a one-off purchase and make a net profit, after deduction of all expenses and before tax, of around £10,000 per annum giving a net yield of 5%.

An alternatively strategy would be to utilise the £200,000 as four £50,000 deposits and to purchase four £200,000 properties, funding the balance of the purchases with buy-to-let mortgages of £150,000 per property.

This would spread the risk, potentially increase the overall net rental income per annum and also possibly maximising the amount of capital return on sale.

Potential investors are very welcome to drop in and discuss their situation with us and take advantage of our free “no obligation” initial consultancy so that we can jointly explore the options that best suit each individual circumstance.  If as a result of those conversations, we conclude that buy-to-let is not the right option then we will say so.

Alternatively, if you feel confident that buy-to-let is right for you and you are happy to “go it alone” then you are free to do so with our best wishes.

For clients who want to continue a relationship with us we provide a comprehensive service that stays with them through every step of their investment lifecycle.  From the initial planning, through the sourcing and acquisition, letting and management and final disposal of the property we seek to ensure the highest possible financial return.  We also proactively manage each step and provide advice and guidance on the optimum time to invest and disinvest in the property market.

We are totally independent and act solely on our client’s behalf – we also provide access to experts in mortgages, insurance and legal aspects of property investment.

If you would like to book an appointment for a free initial consultancy, then please call Tom on 020 7205 4060 or email him at [email protected]  or visit sourceinvestments.com