It is a fact that we are all trying to earn extra money aside from our actual jobs, which is actually a smart move considering how the average income for living seems to be slowly but steadily rising. A trend that has slowly been on the rise is for people to buy a property and then to rent it out. The principle is simple. You buy an additional property and then you rent it out, the rent money you get every month goes into the monthly mortgage payment, and once that has been paid out, you have the option to continue renting your property and keeping the rent as profit, or you can simply sell the property.
While it does sound relatively simply in principle to become a landlord, if you aren’t careful, you can end up with a loss and possibly under debt after applying for a buy to let mortgage. The most common mistake a lot of newcomers make is that they tend to overestimate the value of their property.
If you are buying property in an area that is unfamiliar to you, it is important that you get to know the area first. Find out the crime-rate, the average prices of houses there, the condition of the property you are buying and so on. The better you know your locality, the higher the chances of you making a better informed decision. You can talk to various local real estate agents to get a better idea of things before you make any investment. You need to spend a lot of time and money to visit potential properties and scout out potential options. You will also have to spend additional money as a landlord to maintain the property and attract potential tenants as well.