Investment property is real estate property that has been purchased with the intention of earning a return on the investment, either through rental income, the future resale of the property or both.
Source: Investment Property – Investopedia
Buy-to-let is usually a secure source of income. We recommend it seldom to first-time investors in real estate looking for monthly income.
It can come to situations when rental costs are much higher then revenues and renting is not much of a solution for the investors. We found some indicators that can signalize this point in a buy-to-let property’s life.
However, the good part is that an investment property rarely becomes a lose-business. When renting is not creating the profit wished for, you can always sell it for the right price.
Worrying news for the rental sector!
According to a recent report, the UK has seen growth in the number of mortgages for non-standard borrowers, such as for buy-to-let landlords and lifetime mortgages. Since 2009, there has been a 19% increase each year to the value of the mortgage lending companies annual lending. These companies have seen their lending amounts increase to £17 billion per year in 2016, a significant increase on the £5 billion that was recorded in 2009.