Make A Profit From Buy to Let Real Estate 

Important to know

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

People are increasingly looking to Buy to Let properties as a source of income in retirement, due to the volatility of stock markets and pension funds. By investing in rental property, people can get a steady stream of income from rent payments. With house prices rising constantly, this can be a lucrative investment for those looking to retire soon. 

Can you actually make a profit from Buy to Let? Although it does take up quite a bit of energy and time, the answer is yes. Yet, there are other important factors to take into account as well. Now let’s explore how to generate income from Buy to Let… 

This type of mortgage is designed for individuals who wish to purchase a property with the intention of renting it out and generating income from it. Whether you’re looking at becoming an investor in real estate or just want some extra passive income, this could be the perfect option for you. 

The right timing can make all the difference. 

In the last few decades, housing prices have seen a lot of ups and downs. You need to evaluate where the market is heading and make an informed decision from there. Are prices stable? Falling? At a peak or headed towards one? Doing your research is key to making sure you’re following current trends. If you purchased a property during 2006-2007, odds are the value has declined by 25%+. This makes it difficult to generate income from renting it out because any small amount of rental money will be immediately offset by the loss in value. You likely won’t see any benefits for quite some time. 

Deciding on the best property 

If you’re thinking about Buy to Let properties, the first thing you need to do is decide what your goals are. Are you counting on the value of the property increasing? If so, houses in London are a great example. By choosing to take advantage of rising property values with the intention of selling it eventually, you’re almost guaranteed to make some money. On the other hand, a large house in Northern England that could be used as student accommodation has much greater rental yield potential and could prove more lucrative in the long run. Narrowing down the type of Buy to Let property you want is a key step in investing. Usually, it’s advantageous to select a Buy to Let property in an area that you know well or is close by. That way, if something happens, you’ll be nearby and also because your comprehension of the territory- its strong points and weak points as well as any future plans for development – will be better. Lastly, take some time to compare various types of properties in terms of price, rental cost and initial set-up fee so that you have a good idea about what sort of return on investment you can expect. 

Following your numbers 

When considering purchasing a Buy Let investment property, be sure to know your price range, the rental yield you hope for, and how quickly you want or need to see returns. Then, stay firm on those ideals; do not let mostly irrelevant details–such as an idyllic view or well-tended garden–sway you from what’s most important in ensuring a sound investment. However, an ‘outstanding’ school in the area may be a deciding factor if you’re looking for a family home. If you miscalculate even slightly, it can have costly consequences down the line. So, make sure to crunch the numbers and stick to your original plan. 

Handling your investment 

If you’re thinking about managing a Buy to Let property on your own, be wary. Although it may save you money in the long run, there is a lot of work and upkeep that goes into being a landlord. Familiarize yourself with the many laws and pieces of legislation related to landlords; if you fall behind or don’t comply, legal action could be taken against you. If you’re looking to rent out your property, there are a lot of things to consider – from dampness in the property to immigration checks for landlords. If it sounds like too much to manage on your own, we suggest speaking with a letting agent who can help guide you through the process. 

Get out clause 

No matter what your goals are for a Buy to Let investment, it’s always best practice to have an exit strategy planned in advance. This way, you can consider different market conditions and be prepared for anything that comes up. If you’re thinking about taxation implications down the line, annualizing your exit strategy might be the best bet to take advantage of tax breaks when they come up. 


There are many risks that come along with Buy to Let mortgages and properties, the most prominent being the ever-changing housing market. However, there are also issues you may face with the property itself, such as having to pay for repairs or furnishings; struggling to make loan repayments if tenants refuse to pay rent; or facing penalties from landlords. 


If you’re not familiar, Buy to Let is when you purchase a property solely for the purposes of renting it out. It can be quite profitable—in some cases yielding up to 12 to 15%. A good yield is typically around 6 to 8%. For example, if your property value is £150,000 and you charge £750 in rent each month, then your yield will come out to be about 6%. To find your rental yield, divide your rental income by the value of the property. This will give you a percentage that reflects how much profit you’re making each month or year. You can use this number to compare different properties and make sure you’re getting a good return on investment. 

So, is it possible to profit from Buy to Let? 

Yes, although it’s not a quick and easy process as many people naively believe. It necessitates in-depth research and attentive management to be successful. Your Mortgage Experts can help you achieve your Buy to Let aspirations by supplying excellent mortgage deals which get you one step closer to becoming a property mogul. If you’re curious about how a Buy to Let mortgage could benefit you, get in touch with one of our expert advisors or visit ours by clicking here website. 

Luca Bertolino

Mortgage Expert

Your Mortgage Experts is led by Luca Bertolino with 20 years experience in financial services and in the property market. Through Luca’s wealth of knowledge and expertise, Your Mortgage Experts have become a trusted adviser that clients have come to rely upon for all their mortgage and protection needs.

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