I assume that as you are reading this page it is the first time that you have visited our site, and if that is the case, welcome to the world of buy-to-let!

Whilst buy-to-let seems simple at the outset, in that you go out, buy a property, maybe fix it up a little and then let it – buy-to-let is in fact one of the most complex forms of investment that you can get involved in, as unlike, say, stocks and shares, you have to create the investment in most cases, and again unlike stocks and shares, a buy-to-let investment can cost you each month if your property is not let because you will still have to pay costs such as Council Tax, maybe electricity, gas and water charges, plus if you have borrowed the money to buy the property, the cost of servicing any loans.

What makes buy-to-let so exciting though is the ability to borrow up to 85% of the cost of the property and enjoy both an increased annual profit on your cash invested and a greater capital gain.

In the case of your rental income, if the net yield, the net rent after deducting all operating costs & interest charges as a percentage of the value of the property, is greater than the interest rate on the borrowed money, you will make a profit on every pound borrowed.

In the case of capital gain, if you borrow 85% of the value of the property and put down a 15% deposit and prices rise by say 8% over a year, the gain of 8% translates into a gain of 53% on your 15% cash deposit. The lower the level of borrowing, the lower the percentage gain on your cash deposit.

But, and there is generally a downside to any good idea, quality is now even more important both in the context of the property, the location and the internal refit and furnishing.

Today's tenants have choice and good tenants have the widest choice, so badly located properties with sub-standard interiors will not let easily, will not attract good tenants and can easily turn into a cash drain rather than a good investment.

In addition to this, a comprehensive understanding of the options open to you is also advisable, as decisions made at the start of a buy-to-let investment can affect the performance over a period of say 10 years by many thousands, if not tens of thousands of pounds.

To help investors, be they novice or experienced, we have designed a series of Workshops to provide a detailed understanding of all aspects of buy-to-let and a range of Software to accurately cost up potential investments and forecast probable returns.

I hope you will enjoy our site and find the content useful, helpful and maybe thought provoking.

Please do not hesitate to make any comments, good or bad, as we value your input.

My regards

David Humphreys