Factor in various costs associated with a property purchase

Posted under General by Michael

It is not always what you think (as a landlord) that counts but what the tenants think of your property and the surroundings that probably matters the most. In other words, think from tenants’ perspective. They are not only renting your flat or house but also effectively lifestyle from you (the property owner) and your property. Of course, you budget also must permit you to invest in an area where property rates are high.

It has been observed that just about 5 per cent of property investors are debt-free and independently wealthy and hence do not need a mortgage for funding a property purchase. Many of these still borrow funds to be able to buy more properties and earn better profit margins. If you are new to the market, check the minimum level of deposit needed by lending institutions when they grant a borrowing facility on any ‘Buy to let’ mortgage. Property investors also should factor in other associated property costs on top of the deposit. These comprise Stamp Duty (a property purchasing tax that is paid to the Government.)