Buy-to-let Property is recognised as one of the safest long term investments around. Over the years, there has been a notable increase in the number of people buying-to-let. Some people choose to make a living out of it, whilst others just invest in one or two properties as a pension. Even if property prices fall, you can still make money from your buy-to-let property, providing you look at it as a medium to long-term investment and don't decide to sell the property during a downturn. Some mortgage providers offer products that are specially designed for those buying a property to let. Many of these products are only available through specialist mortgage brokers, so shop around and ask questions. Before investing in a buy-to-let property you have to think very carefully about the type of tenants you are likely to get in the area you plan to buy. You must be sure that your investment will pay off. When targeting tenants, ensure the property is decorated and possibly furnished in a style that will suit their needs and the rent you plan to charge. As a rule, tenants like to be near shops and other amenities and good proximity to transport links is always important. Do your sums before committing to a buy-to-let property. To calculate the gross rental yield you could achieve use the Gross yield formula:
  To calculate the net yield you could achieve:
 To calculate your annual running costs:
Mortgage payments + estimated refurbishment cost
(over 3 years in London £15,000) + vacant time (estimate
30 days/annum based on how much rent is asked for) If you invest in a leasehold property, remember to factor in annual service charges and ground rent.
Beware of vacant periods and make sure the rent you charge is competitive. If you set your rent at the top end of the spectrum, you could find it takes longer to find tenants, leading to longer vacant periods, where you lose money. However, if you reduce your rent by a few per cent, you have more chance of attracting tenants and reducing vacant periods. This means you could still end up earning the same, if not more, from your property than if you had set a higher rent. Finally, to calculate the capital growth of your property investment:
 Please remember that this information is simply a guide and every case varies. If you plan to invest in a buy-to-let property, do speak to your Winkworth estate agent or seek independent expert advice.
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