Most people approaching an estate agent to sell their property rarely consider renting it out. But if you’re moving to a new home you don’t necessarily need to sell your current property! What if you could have both properties and make money from your old property without lifting a finger?
This option means you’ll own two properties and enjoy the equity growth of both of them in the future. This will put you in a better position further down the line to purchase your forever home, or even to help your children get on the property ladder themselves.
The graph below shows the increase in property prices since 2000 and illustrates how property prices could increase further over the next 10 years, based on the last 20 years. It also indicates how much capital appreciation you could have earned in your current property.
You’ll go ahead and buy the home you have your heart set on, exactly as you would expect. However, instead of selling your current property, you’ll take out a BTL (Buy to Let) mortgage, which allows you to purchase your new property.
When you re-mortgage your current property, the capital appreciation you’ve gained since buying it could be enough for a deposit to purchase your new home.
When you do this, you’ll still own your existing property and will be able to rent it out. So your rental income would likely cover your BTL mortgage payments, effectively paying for itself, and potentially giving you an additional source of income.
In ten years’ time, when you decide it’s time to move into your forever home, you could sell both properties, enjoying ten years’ of increased property value– plus the rental income you’ve received over ten years.
Used prospect to let my house out and for advice on investments. Spoke to Jordan he was excellent and was very pro-active. I have just brought another property now and they are both managed by prospect. Great lettings team, great service.
- Mr DS.
Prospect Estate Agency helped me to buy my property and subsequently they let it for me too. I have found everyone at Prospect to be very personable and professional. I would highly recommend Prospect to anyone else looking to buy, sell or who needs to rent out their property.
- Mrs CD.