Have you ever wondered where land lords get all that money to buy property that they lend out? Some of them inherit property and that’s the easiest way to get property out there. As for those land lords who aren’t blessed with that kind of luck, they have to buy property just like regular people. This also means that they aren’t necessarily filthy rich and able to buy property just like that (otherwise, why would they collect rent, right?).
There are certain ways through which a person can buy to let property and you can use these means too. Sometimes a bank loan can take too long to process and there might be too many steps involved that you don’t want to bother with. In these kinds of situations, you can resort to buy to let mortgages and purchase property that you can rent out to tenants.
This kind of a mortgage is classed about a business transaction, which is why the fees and rates involved are a bit higher than the regular residential property mortgage that you can expect to pay. If you manage it right, investing in a to let property can be a very viable source of income in the long run but there are certain risks involved as well.
A lot of land lords count on their earnings from rental income to pay off their mortgages and this can create a vicious cycle of sorts. This would also explain why landlords are always in a hurry to take rent from you; they can have trouble paying their buy to let mortgages if their tenants aren’t paying up on time.
If you can play your cards with your mortgages and income sources right, you can greatly benefit as a to let land lord.