Ultilising buy to let mortgages is a brilliant way to help grow a property investment portfolio. Rather than using all of your own resources, leveraging debt (buy to let mortgages) helps you to acquire more property and ultimately increases your ROI.
Are buy to let mortgages the right choice?
Of course, consideration is required in order to establish a debt repayment plan. But in terms of pure growth then buy to let mortgages can really help achieve this, assuming this is your aim.
If your goal is not to grow a large portfolio, then levegaing debt with buy to let mortgages might not be the path to take.The key is to establish what your aims and ambitions as a property investor are. There is no right or wrong answer of course, but it is helpful to know what path you intend to follow. If you intend to work with an adviser (a buy to let mortgage broker like ourselves) and are clear on your bigger plan, they will be much better placed to help.
Buy to let mortgages are not the only option!
When it comes to property investing, there are multiple ways to do it. Indeed, buy to lets might not be your preferred choice, or buy to lets might no longer offer the returns that you could once achieve. I have said it many times before, in this day and age, property investing is now a game for the professionals. The amateur landlords have either left the market or are just not active. The activity that we are seeing in this sector, is with those people who are making this a career and looking to grow and maximise their returns.
Buy to let mortgages alone can not maximise ROI?
To maximise returns we are seeing more and more buy to let investors broadening their horizons and research different areas. A great platform to help with researching yields in different areas is Property Insights and is definitely worth exploring. But the point is this; you can’t rely on leveraging alone to maximise your returns or growth, you need to consider all investment options.
The professional property investor today is not only looking at different areas, but also considering alternatiive ways to maximise their yields. These might include investing in HMO’s (houses of multiple occupation) to achieve higher yields and buying properties which need work before letting them. There are many other ways to invest in property and maximise returns but the point is, they aren’t passively sitting back and just buying a buy to let.
Take a look at the video below which is part of our Q&A on our YouTube channel which talks in more detail about buy to lets and hopefully helps answer one of our subscribers question: