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Why Buy-to-Let? - Liverpool

A Buy-to-let investment is buying a residential property for the purpose of letting it to tenants.  It is a medium to long-term investment potentially generating a return of income and capital growth.

Property prices are less volatile than equities.  Property not only has the potential for capital growth, but is also an income-bearing asset. Its income bearing nature gives you the ability to service a mortgage.

The level of loan to value is determined by the yield of the property, which is generally capped at 85%

The level of gearing directly affects the potential for capital gain.  With current market trends in certain areas of the UK the return on your original investment can be significant.

Buy-to-let as an investment has proved a very popular way of wealth generation over the last five to ten years.

Past performance is no guarantee of future performance and property prices can go down as well as up.  Interest rates may go up or down and rental returns are not guaranteed.