subject: Looking For A Long Term Investment How Buy To Let Property Is A Sensible Choice [print this page] When it comes to investing money stocks and shares have taken a dive in recent years, investors are turning to other methods to secure their financial futures. Due to the general economic climate the markets are extremely volatile and confidence is low.
We need to look for alternative ways to invest money; there are a number of diverse choices available such as investing in antiques or wine. The disadvantage of this is you cannot be guaranteed an increase in value and a lot of knowledge in the area may be required. What may seem like a good idea at the time may be a hasty decision when it comes to long-term investments.
We are currently in the middle of a mini boom for investors choosing buy to let as a sensible choice. This is because we have a situation where rents are going up and property prices are coming down. The recession has created a problem for many people who have lost their homes through bankruptcy or who have been forced to sell up. Younger first time buyers are unable to buy their own homes due to the high deposits required and the lack of mortgages being agreed by lenders.
Investing your money in a property in order to let it out is a great idea for a long term investment; it will not provide a get rich quick scheme however it will secure your finances for the future. If you have the money to invest it could be set aside in a property with the aim of being used for a comfortable early retirement in later years. Alternatively, looking ahead to ten or fifteen years, the property prices could have risen substantially creating a large profit. Selling up and re-investing is then an option leading to a very healthy growth in funds.
The major benefits associated with buying to let is that after the initial property has been purchased the property will not only increase in value all by itself it will also generate a monthly profit. This monthly income can either be used to cover any mortgages outstanding on the property or if not this money can be saved with the view of further investing in the future.
Some of the risks surrounding buy to let schemes include the possibility of the property standing empty, however if the rent is fair and the property is a sound choice this is not going to be the case very often. It is possible to take out landlords insurance which can cover you against damaged property or loss of rent.
