Deal Sourcing UK Investment Property

How to Make Money from UK Property Investment in 2021

Is it really possible to make money from investing in a property ? Much has been said about High Yield Properties and Buy-To-Let, and if you’ve heard it, you probably want to know about how they work. 

With a remarkable growth in rental property demand in the last few years, a lot of people are investing in these properties with very optimistic returns. So how can you make money from buying a home? Here’s everything you need to know:

What’s the meaning of Buy-To-Let and High Yield Properties?

Buy-To-Let is the term given to buying a property which you are going to rent out, instead of living by yourself. Mortgage lenders have particular houses for investors who need a mortgage to acquire their buy-to-let property. Generally, these have bigger interest rates because of the added significant risk to the mortgage provider.

On the other hand, High Yield Investment Properties are the ones that generate a great rental income and will probably cover your mortgage and expenses with some money leftover.

Let’s see some advantages for investing in this kind of properties:

Demand for rental property

Many areas of the United Kingdom are still too expensive for many people to be able to buy a property and make money from it, for others renting their home suits their choices. Consequently, there is high significant demand for UK rental properties. Several studios from real estate business predict that by 2045 55% of the UK population will be living in Buy-To-Let houses.

In case you are looking for Buy-To-Let properties, there are a lot of PropTech software where you can find them. One of the best-known is DealSourcing. This PropTech Software has been able to automate this process and create a platform that becomes your very own property sourcer. Through algorithms and the power of automation, the platform is able to find properties from all across the internet and sort them by ROI. 

It saves you time, money and energy! The key feature of this platform is to find High Yield Properties. It’s a no brainer to have if you are looking to Buy-To-Let property investment.

The software also calculates the return on investment for every property on Rightmove and locates below market value properties for sale, saving investors hours of time spent on research. 

Low interest rates

You can invest in a high yield property or Buy-To-Let, despite the capital to cover the entire purchase price, because a lot of mortgage lenders offer Buy-To-Let mortgages. With low interest rates and mortgage suppliers competing for business, it is possible to assure yourself a low rate deal.

Rental yield and capital growth

With UK Buy-To-Let property investment, you can get a profit on investment in two manners. In the first place, your buy-to-let property can provide a rental yield; this is the quantity of money you get in rent less the purchase costs and other running costs. 

You can also gain money when you sell the property if house prices have increased. Property values will always be subject matter to fluctuation but would be expected to grow over the long term. It might be some years before you enjoy significant capital growth. 

Mortgage tax relief

Most investors in buy-to-let will need to pay income tax on the rental payments that they collect. Until the 2016 tax year, buy-to-let proprietors were able to assume mortgage interest with other deductible costs from their rental income before calculating their tax liability. As of 2020, you are no longer able to deduct any of your mortgage expenses from rental income to reduce your tax bill.

Capital gains tax

When you sell your property investment, you will need to pay capital gains tax on any gain that you make beyond your capital gains tax allowance.

Minimum Energy Efficient Standard regulations

You may incur costs ensuring that your investment property complies with the Minimum Energy Efficient Standard regulations. All rental properties must have a valid Energy Performance Certificate, and from 2020 proprietors can no longer let properties with an Energy Performance Certificate rating of below E.

Brought to you by puts the power of automation in your hands. Search over 200,000+ Below Market Value deals (Buy-To-Let, HMOs and BRRR) with ROIs above 15% with the click of a button. Find High Yield properties with our efficient and easy-to-use tools.

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