by James Grantworth
Buy to let investment properties may appear to be the easiest method of building a second income but it is important to bear in mind the long term implications of this kind of investment as without careful planning you may end up paying out more than you had initially anticipated. A buy to let property is generally regarded as a long term investment and the decision to purchase should not be taken lightly as it can take quite a long time to get your money back once it has been invested if you revert your decision. A buy to let investment should be regarded as a small business which requires the owner to take on various responsibilites and is accountable to entities like the tenant, the mortgage lender, the council and the tax office.

To know whether buy to let property investments are right for you or not, you need to ask yourself the right questions such as:

• Will I earn enough in the near future so as to take care of my monthly instalment commitments and other expenses in case I am unable to find a tenant who pays the desired amount of rent?

• Will I be able to bear phenomenal losses in case there is a slump in the real estate market?

Will the but to let mortgage loan affect my creditability; will I be able to apply and remain eligible for other types of loans in the future?

You need to consider all the costs involved in investing in your buy to let prioperty before you sign on the dotted line. For example, you will definitely be required to bear costs related to property insurance, ground rent, service charges, and letting charges. There is the ongoing costs of repairs and maintenance to the property which is the responsibility of the landlord since not many tenants would consider moving to a house in a dilapidated condition.

Other potential expenses may relate to the repair, maintenance, or replacement of gas and electrical appliances so as to ensure that they confirm to fire safety codes as required by government authorities. You might also have to consider legal costs that might arise in case your tenant starts defaulting and refuses to move from your property.

Before making any decision, you need to carefully assess your current and future financial position if you want to achieve the best possible return from your buy to let property investments. Making a profit from buy to let property is not as easy as it may seem so it is best to conduct careful research before going ahead with the purchase.

James Grantworth is the marketing director for Let Mortgages Limited, a company which specialises in buy to let mortgages for investors offering buy to let mortgages which require the absolute minimum of capital investment. For more details visit: http://www.letmortgages.com

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