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Is it worth buying a house to rent?

Buy-to-let is a form of real estate investment that involves purchasing a property with the intention of renting it out later. In this way, investors seek to obtain a long-term return, increasing their financial stability. This action represents an opportunity to profit from the constantly growing real estate market, and is therefore considered by many. But what really are the advantages of investing?

Advantages of buying a house to rent

When purchasing properties with the intention of placing them on the rental market, there are some advantages you can enjoy, including:

  • Secure income – nowadays it is more common to find people looking for a house to rent than a house to buy. Therefore, when investing in a rental property, you will find it easier to find interested tenants;

  • Various sources of income – did you know that with a real estate investment you can profit in different ways? One of them is through the payment of rent to the inhabitants of the property to whom they decide to rent. Another is through the value of the property itself, which often increases. In other words, the area where you rented often increases in capital value and, if you intend to sell the property in the future, you will be able to make more profit;

  • Investment control – as the owner of the property, you can control who the tenants you will accept, establish the value of the rent and even carry out works if you see fit, in order to increase the value of the house; Inheritance – real estate properties can be passed on to heirs, so this can be a safe long-term investment, providing security for future generations.

What to consider when buying a house to rent

  • The conditions of a second home loan. If you have already taken out a mortgage loan, you should know that the second one already offers less beneficial conditions. The percentage of the amount that the bank grants is lower, as is the term of the loan.

  • Expenses and costs. There are costs related to the deed and taxes, as well as expenses related to housing credit. It will have variable monthly costs, as well as fixed annual costs.

  • Property rental management. You must be willing and available to manage the lease. If there is a problem with the property, you must resolve it and be able to help your tenants with any issues that arise related to the property.

Final advice for a good investment

To ensure that you make a safe investment and have a prosperous business, we leave you with some advice that you can follow:

  • Get to know the real estate market – Study the area where you intend to buy the property to understand the prices and be able to make a conscious decision when establishing the rent value;

  • Have a backup plan – Create a financial plan that takes into account possible extra expenses and prepare yourself for the eventuality of unforeseen events. This way, you remain protected and safe in your investment;

  • Choose to work with qualified professionals – Use real estate professionals who can help you understand the best investment to make, in which area and under what conditions.

See the full article here.

Source: Imovirutal


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