Buy-to-Let Mortgage: The Right Choice for You?

View of a row of newly developed terraced houses.

23 Nov 2016

Posted in:  Loans and Mortgages

Thinking about branching out into the property market and becoming a landlord? It’s an exciting investment decision and a buy-to-let mortgage is specifically designed for those who wish to purchase property for the purpose of letting it out. Although it’s a medium to long-term investment, it can be very rewarding if you decide to go ahead.

Read on for some simple guidelines to keep in mind when considering a property investment.

Know The Market

As with any big financial purchase, if you’re planning to invest in property - do your homework. Start by researching the market and making sure there’s demand for rental properties. Take time to familiarise yourself with all of the risks involved so that you are well prepared.

Choose the location of your property very carefully. You’ll need to consider transport options, local amenities, schools and colleges.

Consider who you’ll be renting to as well. If you’re investing in a three-bedroom house, chances are that this will appeal to families so good schools nearby will be an important consideration.

Style Your Property

Decorate the property to a high-quality standard but keep it simple. Invest in good-quality and well-made fixtures and furniture to give your property a polished look. Most tenants will want to put their own stamp on a home to make it feel like their own, so a blank canvas can help to ensure that you keep a longer-term tenant.

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Letting Agent

If it’s your first time renting out a property, you may wish to get a letting agent involved. Showing properties to prospective tenants and screening a shortlist of applicants can take time. If you prefer, a letting agent can take care of this – along with setting up the paperwork and rental agreement. An agent can also be hired to take care of any issues that arise during the rental period, such as broken appliances or arranging for repairs needed.

Letting agents will have a good idea of how much you can expect to earn from your property and this can make forecasting your finances much easier. However, you’ll need to work out how much you’re willing to spend on external costs to hire an agent to ensure you make a profit on your investment.

Tax Incentive Schemes

When investing in a buy-to-let property, it’s important to consider taxation and the tax incentive schemes available as well. Put time in your diary to go through the regulations around this area and seek expert advice if you’re unclear. The various schemes – from the Wear and Tear policy to the Home Renovation Incentive - are all laid out clearly on Time invested here can help to save money in the future, so it’s well worth browsing through each section.

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Want To Know More About AIB Mortgage Products?

Whether you’re a new or existing customer, you can find out more about getting a buy-to-let mortgage by visiting our buy-to-let mortgage information page.

If you have additional questions, why not make an appointment with an AIB mortgage advisor?

You can view our current mortgage rates here. We also have additional benefits specifically designed for this purpose including home insurance for those investing in a buy-to-let property.

If you’d like to connect with us on our social media channels, you can also follow us on @AIBIreland and on Facebook.

Allied Irish Banks, p.l.c. is an authorised agent and servicer of AIB Mortgage Bank in relation to origination and servicing of mortgage loans and mortgages. AIB Mortgage Bank and Allied Irish Banks, p.l.c. are regulated by the Central Bank of Ireland.

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