Buy-to-let can be a great way to make use of property you can’t or don’t want to live in. It’s also a great way to make money without having to do a whole lot of work. Despite what you may have read about tax relief and proposed changes to the system, BTL is still a great bet.

If you’re interested in:

*Earning a passive income

*Building a retirement income

*Location independence

*Accumulating wealth at a relatively low risk

This is where to start! Download our free buy-to-let guide! This amazing free report will be sent to your email address within seconds.

How does buy-to-let work?

BTL is essentially the means by which you profit from property ownership. Not only does your property (the asset) accumulate in value while you own it (profit), your rental income provides immediate profit and cashflow, making BTL investing one of the lowest risk enterprises around.

If you’re considering investing in a BTL property, it’s important to choose one that is located in an area with desirable amenities and is suitable for rental purposes. Moreover, you can also contact Berks Homes or any other real estate company, which tends to have a list of different types of properties to choose from. After you’ve purchased the house, you can start renting it out right away, and the rental income will possibly help you pay for mortgage payments, if you have any.

However, it’s essential to acknowledge that renting out a property involves substantial responsibilities. Firstly, tenant screening is a critical step in the process. You certainly wouldn’t want to entrust your property to someone with a questionable background or history. This is precisely where the expertise of Los Angeles Property Managers (or professionals of comparable caliber) proves invaluable. The experts can conduct meticulous tenant screenings, encompassing comprehensive background and financial checks, all aimed at safeguarding your interests.

Furthermore, the task of ensuring timely rent payments can become burdensome and disrupt your daily routine. In such cases, enlisting the assistance of property managers once again becomes a practical solution. Their expertise extends to efficient rent collection, relieving you of this responsibility and allowing you to maintain a hassle-free landlord experience.

How can I get into buy-to-let property?

Entering the world of buy-to-let property can be a lucrative venture. To start a buy-to-let venture, it’s crucial to develop a solid understanding of the property market and the associated regulations. Once you’ve gained this insight, you can proceed to purchase a property with the intention of renting it out.

Upon securing a property, it’s vital to ensure that it meets the required standards for potential tenants. To assist with this, you can consider partnering with a property inventory management company like No Letting Go (https://nolettinggo.co.uk/). They can conduct routine inspections and guarantee all safety criteria are met.

When is tax relief for buy-to-let changing?

Buy-to-let landlords are taxed on their rental income and any profit they make if they sell the property. The amount of tax relief you can claim has been changing since 2017 and will end by 2020.

Previously, landlords could deduct all their expenses from their tax bill, including interest paid on their mortgage, maintenance, and insurance costs, letting agency fees, and utilities. If you earned 1000 a month in rental income and had 500 in expenses, you would only pay tax on the remaining 500.

Under new rules, the amount you can deduct will be reduced by 25% each year until 2020. However, there is still plenty of time to take advantage of the current rules!

How will that affect my income?

By 2020, landlords will be taxed on all rental income, instead of just their profits, and then be given a 20% tax credit. Some landlords will be affected more than others – it all depends on your income.

If you’re a basic rate taxpayer, you’re unlikely to see any difference. However, at higher and additional rates taxpayers will see an increase in the tax they pay. You can find the most up-to-date information at gov. uk. if you live there. If you are from any other country such as the United States, you may check in the government resources of the location.

Download our exclusive e-book here to find out how to secure a buy-to-let mortgage, manage your property, and make a profit after taxes and expenses. This is a must-read guide that will reveal all the secrets and tips you need to know to succeed when investing in a BTL property in the UK and other countries across the world! Download our free e-book! This amazing free report will be sent to your email address within seconds.