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Thursday, February 21, 2008

Buy-to-let properties

"Investing in buy-to-let properties should be seen as a long-term investment. Despite this, brokers expect nearly 80 per cent of landlords to make a positive return on their investment this year."
In spite of all the house market crises I am still convinced that investing in houses IS a good investment.
With the inflation rate as high as in the last months, the cost of money as low as it is, if you have to predict the future you will come to the conclusion that an investment in a buy-to-let property is the best you can do.
You can have a capital that with the actual inflation rate will keep its value in the future, and will guarantee a good income, certainly much higher than the one you could get from ANY Bank Investment.
The same, even more, could apply to the situation where you actually do not have the full amount requested to buy the property.
You risk to borrow money which is worth a certain value and giving it back with a much lower one.
That means you will make a profit in owning a building worth much more than what you paid and another one being able to pay the interest rates with the money you get from the rent.
And this is EXACTLY the way many people began with nothing and have millions now.
And if in the meantime the interest rates grow?
Well you can always find the right Remortgages to pay back your property.
But the whole thing is not so easy as it looks.
Every business to be successful has to be done in the right way.
You have to carefully evaluate what you are buying.
Keeping in mind that it must be worth what you are paying for.
Keeping in mind that it must be a location sought of, a building size you can easily rent and of course something that doesn't need a fortune to keep.
If you are good in buying, you will be good in selling, no matter how difficult the moment can be.


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