The principle behind buy-to-let is a relatively simple one: an individual buys a property and aims to make money by renting that property out to others. This practice has transformed the UK housing market in recent years, with property increasingly being seen as an investment, rather than simply a place to live.
There are many reasons why this form of investing has become more popular but one thing that has undoubtedly been key has been the fact that UK house prices have generally been on a steep upward curve. Individuals have seen that this opens up opportunities to profit by buying property at a relatively low price, then selling it for a profit at a later date (having also made a regular income from renting it out in the meantime).
It all sounds easy and highly profitable doesn't it? Well...for a great many people it certainly has been but buy-to-let is not without its risks. One such risk is the fact that you could be liable for capital gains tax when you try and sell your property, so the "profit" may not be as great as you might think. Another issue is that making a quick profit is dependent on house prices rising quickly - once house price increases slow (or go into reverse) then it becomes much more difficult, unless your looking to invest for the long-term.
Our guide will take you through some of the key issues surrounding buy-to-let:
Buy To Let Mortgages
Things to consider when buying to let
Making sure your second home is insured