Buy to let property: Mortgage calculator as stamp duty fuels investment
Buy-to-let allows Britons with the capital to invest in property, renting the houses to maintain them. Initially Britons were put off by tax changes which meant that buy-to-let was a less attractive prospect.
Now that the stump duty has been reduced, owners are likely to reinvest in the market. Should you?
Howsy, a rental management platform, showed that rental income fell by 13%.
Rental prices have fallen as the economy is hit by the coronavirus, meaning fewer people can afford to rent, which aspiring homeowners will need to be aware of.
On the other hand, at the higher end of the market, owners can save £15,000 on stamp duty.
READ MORE: The best UK towns to buy to let investments revealed – homeowners should put their money here
For those who think buy-to-let is their preferred investment option, there are various mortgage calculators to help future homeowners.
One, per Habito, will tell Brits how much they could borrow and what their monthly mortgage cost could be on a buy-to-let basis.
The Money Facts website offers a rental yield calculator to calculate a landlord’s expected return on an annual or monthly basis.
UK buy to let hotspots revealed after lockdown by online broker.
Mojo Mortgages has analyzed popular buy-to-let postcodes across the UK and detailed where the best yield hotspots are currently and where to avoid.
The Northwest is one of the best regions currently generating high yields.
There are a number of profitable pockets in Liverpool city center which generate returns in excess of 10%.
Bradford and Sunderland follow Liverpool, generating returns of eight per cent and nine per cent respectively.
Also, buying now could be a good option as prices are expected to rise according to an expert.
House to Buy Fast director Jonathan Rolande said stamp duty cuts would cause real estate inflation.
He added: ‘It will entice people to move if it has an end date and can’t hurt.
“As they say it will kick the box, people will buy like crazy and then blame themselves for paying the stamp duty.
“With incentives such as the stamp duty reduction or the purchase assistance program, all this only fuels housing inflation.”