If you’re in the property game then you’re always looking for great ways to fund your next purchase. Right now the property market is depressed, which means houses are going for cheap, at least compared to what they were before. Of course, that doesn’t mean you can get your new house for the change in your pocket, it’s still ludicrously expensive to get on the ladder. But if you’re interested in getting your next asset, then you need some BTL finance info.
– Why Buy to Let?
Buying to let is a great way to afford that house. If you’ve seen the perfect space with a low carbon footprint but a high price and you want to know how to fund it, then you should look into BtL. Your renters will offset a lot of that price difference while you rest easy knowing you own a home that is better for the environment. And this could be the start of a whole eco-friendly landlord business.
– What is Buy to Let?
There is a ton of useful material out there on BTL; it’s simple. Right now, you can get discount houses at auction that are going for far cheaper than ever before. Great houses with proper insulation, solar panels, lots of greenery and little environmental impact can be bought for dirt. An excellent way to fun it is through a bridging loan, which will give you the cash you need to afford it, and then you simply set yourself up as a landlord and wait for the dividends to return your way.
– Why Is It Useful?
If you take out a bridging loan you can expect to pay it back within the year, but if you set yourself up right from the get go then your renters will foot the bill for you. If you get a decent family in for a few years, you’ll have basically bought the house for nothing. Your loan will cover your initial costs and your renters the rest. Then, when you’re ready, you can live in it yourself, or, if you find it’s working out, do it all again. You could have three or four eco friendly houses on the cheap that you rent out to deserving families, and all through the simple, easy process of a bridging loan.
– What Are the Downsides?
A bridging loan is a short term solution to a financial predicament, so you want to make sure you can get that house, as otherwise you’ll be left with the debt. There are also some costs involved at the start, but thankfully there is no punishment for early repayment and it’s all based on the equity of what you already own. Really, if you get that house that you want, then you’re sorted. It’s a win-win solution for all.