7 years ago by Nigel Kags and 2336 Views
Owning Your Home
To own a home is different than a buy-to-let property. Owning a home is the best investment anyone can make. Although an individual may borrow money to buy the house, eventually the money is returned but you own a house. The key is to find a house that you can afford and within your budget.
One advantage is that the value of your house will appreciate over time. So if you ever decide to sell your house, you will make a profit. Another advantage is that, being a homeowner gives you freedom. It also allows you to have creative control of your property. This is because you can alter the property to suit your needs and your style.
On the other hand, there are also some disadvantages. There are additional costs to owning a house. These costs usually include taxes, insurance, rates and maintenance. This can be a huge financial responsibility on a new home owner.
Buy-to-Let Property
Buy-to-let is refers to a property that is purchased solely to rent it out to tenants. The mortgage loan that comes along is specifically for this purpose. A great example of a buy-to-let property investment is an apartment complex. You buy the house and turn it into a business with you as the landlord with important legal responsibilities. Due to this, your house is considered a buy-to-let investment.
One advantage of a buy to let property is earning an income in 2 ways. Depending on where the property is situated, you get paid through capital growth. The other way is to get paid through monthly rentals from the tenants. Through buy-to-let, investors can have a steady source of income if they find reliable, long-term tenants.
On the other hand there are also some disadvantages. You may face high costs for any major repairs caused by the tenants.
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