• If you can’t make the rent needed to cover the mortgage then you still need to make the payments, so it’s vital to work out how much you can realistically get from your property.
• If house prices fall, then it’s likely that your property’s value will reduce. This means when it comes to selling it, you may not make as much capital as you want. Further, if the sale price doesn’t cover the mortgage, then you’ll have to make up the difference. However, if the housing market performs well, you may be able to benefit from capital return as well as from the ongoing rent before you sell.
• It’s always worth considering that unexpected repairs or problem tenants could increase your costs. • You can’t access your money quickly. You’d have to either sell the property or take out another mortgage, both of which take time. • You’ll also need to cover the costs of buying, which include solicitor and conveyancing fees, stamp duty land tax and survey fees, among others.