Finance & Banking - Buy to let facts

Buy to let in the UK has been a major growth market for the last 5 years. Recently, since October 2004, the buy to let market has cooled. It's become much harder to get acceptable returns on property for buy to let.

But buy to let isn't dead. It's still a great long-term investment. You've just got to look harder for the right buy to let property. If you're willing to look outside your own area, to areas such as Scotland or parts of the North (assuming you don't live there already), then some good buy to let returns can be found.

In fact, it's still possible to get 10% yields in the right area. You must be sure to cover your mortgage payments with your buy to let rental income. The days have gone where you can make a monthly loss, but expect to make it up with capital appreciation. Your buy to let property must pay for itself from day one.

Despite the competition, it's still possible to find good Buy to Let investments. Many areas are now yielding 5% or less, but undoubtedly there are still areas where you can get closer to 10% + yield.

Good luck in your Buy to Let investments. Done properly you can build a property empire, or at least provide a nice retirement fund.

If you are more adventurous, you may also think about property abroad. Places like Spain and the South of France are also getting difficult to find the dream deal, but if you want the best deals you should be looking at the cuntry who are just about to join the EU or have just joined. Countries like Bulgaria, due to join in 2007 and Croatia.