Is the whole buy-to-let market changing?

Buy to let or buy to sell?

In a recent article for Property Investor Today website, James Mole of JS Advisory looks at these two approaches to for property investment.

Benefits of buy-lo-let are clear, a regular monthly income, capital appreciation and a lower risk in terms of an investment portfolio. However, managing properties and tenants can be stressful and expensive! It can be challenging to release equity, especially if needed urgently and you are at the mercy of a changing economy.

Buy-to-sell, sometimes called ‘property flipping’ is where investors buy properties to do up and sell on. If done wisely, there can be good capital gain dependant on cost-management and timing. Another benefit of this approach is access to more funding streams with lenders. However it can be a high risk strategy, costing the investor money if a sale takes time. There can also be a much larger investment in time managing the project.

Much like Stamp Duty in the buy-to-let market, buy-to-sell will need to factor in Capital Gains Tax. You know what they say about the only two things certain in life!