But fortunately times have changed, over the last few years a whole army of investor have jumped into the market, and not only are there more buy-to-let investors, but an increasing demand for rented property. Renting is now a matter of preference rather than necessity for many who enjoy the freedom or whose jobs demand mobility, and it is expected to grow further.

A GROWING MARKET

In short buying to let is now one of the most attractive long term investment opportunities around helped by the prevailing market trends.

BUY-TO-LET MORTGAGES

Buy to let mortgages are becoming increasingly easier to arrange and now you can obtain an investment mortgage at pretty much the same rate as for your own home. There are now many lenders offering a range of buy to let mortgages. Buy-to-let mortgages include fixed, variable rate, capped, discounted rates and flexible schemes. See our mortgage guide for details.

LONG TERM INVESTMENT

The big attraction of buy-to-let for most people is not the income but the fact that they have bought a property which is paying for itself, if you get the sums right you can arrange a buy-to-let mortgage against a relatively small deposit to purchase a rental property. The rent you receive should not only cover any expenses such as maintenance and repairs, any service charge and the letting agents fee, but also the mortgage payments, and if you are lucky there may be a small profit at the end of the year . As a rough guide you should calculate you annual mortgage costs and aim for an annual rent that is 30 - 50% more than that.

WHERE SHOULD I BUY

With London experiencing souring property prices many are moving out of London and taking advantage of lower property prices and commuting to their place of business. As a result many investors are looking else where for investment property. The key to finding the right investment property is the rental demand in the area you select a thriving town or City with a mixed economy and plenty of industry university etc ideal the ideal place to star looking.

FINDING THE RIGHT PROPERTY

First work out how much you can afford, make some enquires with the local letting agencies to establish the amount of rent to expect, and what type of property is in demand in the area you have chosen.

CAPITAL GAINS TAX

When a rental property is sold you will be liable to capital gains tax ( CGT) although there are a number of ways of reducing this. Cost of sale, legal fees, estate agents fees etc. Cost of your original purchase transaction including legal expenses, stamp duty etc., the original cost of the property. It is worth making some enquires to find out exactly how much you will have to pay when you sell your property

DO IT YOU SELF

If you don't opt for a management agent you have to be responsible for finding tenants checking there references, carrying out inventory of contents, taking the deposit, (4-6 weeks rent is typical) and recovering the cost of any damage, collecting the rent, maintaining the property and dealing with any problems. You are legally obliged to carry out repairs and annual safety checks on gas and electrical appliances, ensure that furniture and fixtures meet the fire safety regulations. So it is worth looking at the service of a management company to manage the property for you.