A quick glance at the latest best-buy savings accounts will soon tell you that you may as well be saving your cash under your mattress as opposed to putting it in a traditional savings account on offer from the big high street lenders. Rates paid on savings accounts are at an all-time low, so the only way your nest egg will make money is if you think outside the box.
Investing in a buy to let property is becoming an increasingly popular way of maximising savings and as the interest in the buy to let market continues to grow in line with the number of potential tenants, more and more families are taking their savings and investing in rental property.
In years gone by, landlords were required to find a hefty deposit before they became eligible for a buy to let mortgage, but with the increasing demand for rental property, lenders are starting to relax their lending criteria and many amateur landlords are taking advantage.
Is buying a rental property a good business decision?
In the current market, investing in buy to let property is a sound economic decision and with rental yields 5-6%, you can enjoy a great return for your investment. However, becoming a landlord is not all plain sailing and, as I know to my cost, there is a lot more to consider than simply buying a property and waiting for a tenant to move in, so make sure you do your homework before ploughing all of your hard-earned savings into a rental property!
