Property Investment for Doctors
2015 has seen a great increase in mortgage lending for buy-to-let properties. If you want to improve your financial situation over the long term, now is the time to start investing in residential properties.
First time buyers are still struggling for larger deposits and cleaner credit records in order to get on to the property ladder. As a result, many first time buyers have now started to rent properties which require a comparatively small deposit, often only a month’s rent, to move in to their new home. Hence rental incomes are on the rise. If you have capital available, it could be a great time for you to invest in rental properties.
Every now and then, doctors tend to forget the original intention of acquiring an investment property or simply do not have the time to be involved to maximise the investment. You may have already acquired an investment property or are contemplating buying; the associated benefits should not to be overlooked. Investment properties help the investor to maintain an asset to produce a sizeable capital gain in the future, benefit from negative gearing to reduce assessable income, plan for retirement and provide various tax advantages.
The tax rules are such that a loss generated through the rental property can be offset against assessable income. This loss is produced as the rental costs exceed the income generated via the investment property. The rental expenses include interest paid on the investment loan, management fees, maintenance, depreciation, capital works deductions, insurance, etc. Obtaining a depreciation report from a quantity surveyor or qualified architect would ensure maximising this important entitlement. Maintaining good records or delegating this task to a real estate agent may be advantageous so as to maximise the tax benefits of the investment.
Advantages of Buying to Let
• Gives you the potential for capital growth
• Can provide you with a regular monthly income
• Adds to your pension pot
Many of our doctor clients make a start in the buy-to-let market by renting out their current home when they buy a larger property. If you are already living within easy access of a major employer such as an NHS trust, your current property will have excellent rental potential.
What You Need
You will need a deposit of at least 25% of the value of the property (ideally 30%). Provided the potential rental income of the property is sufficient, your personal earnings will not be a major concern to the lender. Nor will having a buy-to-let in the background impact unduly on your options for a residential purchase.
We offer a complete package to our doctor clients. We provide full mortgage service, legal service and management service for doctors looking to invest in the property market whether in Yorkshire or London and can find you a suitable tenant.