The key to being a successful property professional is knowing how to make the most of whatever the market conditions are. It's about trying to predict where things are headed and adapting your strategy to suit.
Always get a property survey done on any property you are considering buying - especially if it is a home you are planning to renovate to add value. A few hundred quid spent at the start could save you thousands in the long run.
Even if you have to supplement your monthly rent to meet your mortgage payments, on a rental property if the value of the property is rising by an mount more than this then you are still getting a return on this money. So in a rising market, you might still wish to buy property even if they do not have positive cashflow.
When deciding what properties to buy, look for ones that suit your chosen strategy and are the best that you can get for this purpose.Long term they are likely to provide a better investment than properties that are just OK for a number of different objectives.
To work out you your gross rental yield, you simply divide the annual rental income by the purchase price of the property. However, a more accurate indicator of the return you are going to get is to work out the NET rental yield. This is the return after property management, lettings fees, maintenance and repair and other running costs have been taken into consideration, and gives you a far more realistic view of your return.
Changes to tax rules that come into effect in 2017, will mean that Landlords will no longer have the ability to offset their mortgage interest against their tax bill.
