Buy to rent, or buy to let, is a type of medium to long term investment, wherein an individual buys a property with the sole intention of renting it out to tenants. Buy to let investments are often seen as a good investment, as not only will you receive immediate returns through rental income, but also capital gains appreciation.
Buy to let can either be done with the primary property market or the secondary market. The primary market generally consists of new build projects, or off-plan, where an investor purchases a property that is in the process of being built. In both of these cases, the buyer will be the first owners of the property.
Buying from the primary market can have certain advantages. For starters, with them being new properties, no renovation is needed. Off-plan properties are often priced slightly cheaper, or at market value, which means they make an attractive investment, with these properties generally seeing greater capital appreciation. At Betterhomes, we have a mix of primary market properties, both off-plan and ready to move in. The advantages of primary market properties that are ready to move in are that investors can see a return on investment immediately through a rental income.
Alternatively, an individual may choose to invest in the secondary property market. These are properties that have had a previous owner and are usually situated in mature locations and established residential areas.