The real estate market is something that has seen a lot of volatility in the last few years, but as of now, investing in real estate seems like a good option as the market has certainly perked up. Investments in real estate, especially for those with low income may seem out of hand, but it is possible to make long term profits and even build a solid business on it.
What you should know about buying to let properties on mortgage?
Firstly, consider the amount of money that will go into the mortgage, you should be able to make your monthly income work for your current home as well pay your bills. If the rates are in your favor, and right now, they actually are, you can get a good deal from a bank or a home loan center and purchase a piece of rental property. Equity is the next thing to consider, because you will want your rental property to be worth a lot more than you end up paying for it, while at the same time rake in rent that will cover all expenses, mortgage included.
Can you handle it?
Buying to let properties on mortgage loans will normally cost you more than a personal, residential home. You will have to come to terms with it, more so if you are in the low income group. If there is no occupancy even for a few months, you will have to bear the brunt of the payments, which can eat into your savings.
The bottom line here is that, getting a buy to let when on a low income is not for everyone, because of two things; it requires a lot of planning and discipline, actual returns from a rental property will take time.