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One minute guide to buy to let 
Low interest rates, special buy-to-let mortgage schemes and rising property prices have attracted many thousands of people into becoming amateur landlords. So if you are contemplating investing in bricks and mortar this year, what are some of the things you need to consider?
Step 1Before you consider investing in property, you should decide whether your aim is to generate regular income or capital growth. Be prepared to tie up capital for a considerable period and be aware of the tax implications of buying and selling a second property. Profits are taxable and an eventual sale may incur a future capital gains tax liability. Step 2 Knowing your local market is essential to success, and this is where it can be very costly if you get it wrong. Location is crucial, as is access to parking and transport services. Step 3 And then there is the funding! Mortgage terms vary widely, many providers stipulating a rental income of at least 125% of mortgage costs. Do your sums before you start. Step 4 Who will manage your property? Many landlords choose a managing agent to look after their property. You will also need to take legal advice to draw up a renewable assured short hold tenancy agreement for a minimum initial period of six months. Buy-to-let continues to whet the public appetite, with investors attracted by the rental returns available and the potential increase in capital values. But remember, ‘Caveat emptor’ (‘Let the buyer beware’).
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