HOW TO ACHIEVE FINANCIAL FREEDOM THROUGH BUY TO LET How to Achieve Financial Freedom through Buy To Let Financial freedom is the goal, isn't it? Yes, we all want a well-paid income source or at least 1 or 2 income streams with enough money to plan your amazing retirement. If you wish to have stress-free retirement (especially with smooth moneϐw), you need to plan your investments now. At this point; when you have a good job, great opportunities lie ahead; you can manage some grind and save yourself from hustling in old age. The hottest investments right now are the ones with real estate. Yes, maybe many people will suggest, but have you heard the news on the increasing demand for buy-to-let landlords? Well, this is real, and it is happening. In the UK, various places like Bristol, Manchester, and a lot more have made it to the top of the chart of most demanding buy to let property areas. If this is not the time to invest time and enerϐ eedom, then what are you waiting for? If you have concerns on how buy-to-let can be your way towarϐ eedom, we are here to help! Why is this E-guide useful for me? This guide has everything you need tϐ eedom through buy to let. People often see real estate as the riskiest way of investment, but it is one of the most ϐ ays to invest. So, with this guide, we will walk you through the understanding of how to buy to let work, and then we will talk about the seven steps that can help you plan yϐ eedom through it. About the owner Jehan Anis is one of the shining stars rising above the Horizons. A true leader with a master’s degree quickly became a source of inspiration and motivation, Jehan Anis has achieved unrivaled success in the world of real estate. As president and CEO of Star Sterling, Jehan has a comprehensive understanding of property investments and an enhanced strategic ability to conform outcomes to achieve his clients’ overall investment objectives. Jehan laid the foundation for Star Sterling in 2019 and has worked relentlessly to maximize operational performance and develop exclusive partnerships with investors and buyers while retaining the core vϐ y. His successful career has been an incredible ride, expanding and positioning Star Sterling as an industry leader. About the Star Sterling Established in 2019, Star Sterling is a family-run business based in Solihull. As a cutting-edge investment adϐǡe aim to deliver top-of-the-line investment services to all our valued clients. Leveraging a d ϐ eal estate expertise, we specialize in B2SA, R2SA, and BTL property investments. Our professionals work tirelessly to identify the best investment solutions for estate agents, landlords, and investors and cultivate long-term partnerships for future success. We partner with businesses tϐoperties to provide premium accommodation on a short-term basis to business travelers and contractors. By creating customized strategies for our clients, our services extend beyond the tr ϐeal estate. How to achieve financial freedom through Buy To Let Do you want to achievϔ eedom? Everybody does, but what does it mean? In simple terms, yϐ eedom means that you can have anything you want without regretting spending money on it. Stability plays a major part herǤ ϐ vings to enable us to retire or pursue the career of our choice without being bound by a yearly salary. Our money works for us rather than against us when we achievϐ Ǥ So, how to buy to let is your key tϐ eedom. Before wϐ, you must understand what is buy-to-let? What is buy-to-let, and is it a good investment? Purchasing a rental property to rent out may appear to be a great way to make quick money while also putting money aside for future investments. While this may be true in some cases, there arϐ s to be aware of. A buy-to-let mortgage is required when purchasing a property to rent it out. Is it wvestment? It really depends on the type of property you buy, as some areas have a higher demand for certain types of homes than others. The amount of rent you can charge, as well as how it changes, will have an effect. Although there is no guarantee of prϐhen investing in buy-to-let properties, you can take two steps to increase your chances: Ɣ To learn more about the area you want to buy in and the type of property you should buy, look at house price and rental data and speak with estate agents. Ɣ Make a long-term investment if you can. The best buy to let investment opportunities available in the UK right now. Indeed, the city of Birmingham in the West Midlands has seen the most growth in property investors targeting the area, according to the research. In comparison to 2020, it saw a 14.6 percent increase in landlord insurance policies in 2021. With a 12.7 percent increase in the number of landlords operating since 2020, Bristol was next on the list for growth in the number of landlords operating. The city is a popular choice among Londoners because it offers much of the appeal of a city living in the south at a lower cost than the capital. Leicester was fourth on the list (11.8 percent growth), followed by Manchester (11.4 percent), Liverpool (10.8 percent), and Edinburgh (10.8 percent) (10.7 percent ). London was seventh on the list at the time, with a 10.3 percent increase in the number of landlords purchasing insurance. How do you invest in buy to let? It's natural to be curious about how buy-to-let works, especially if you're unfamiliar with the concept. In a nutshell, the buy-to-let concept works in three stages: Ɣ The investor chooses the property they want to buy. Ɣ The buy-to-let investϐenant who is willing to pay the monthly rental payments on time. Ɣ Rental payments provide a return on investment for the investor. Ɣ Of course, you'll need to be familiar with the process of purchasing your buy-to-let property, as well as topics such as buy-to-let mortgages and tax on buy-to-let purchases. Steps to reach financial freedom through Buy To Let Ɣ Step 1 - First Decide on WHAT you want to Achieve from the Property and WHY? The purpose is a vϐ chasing the propertyǤǡϐǡou need to decide on the use of the property. Of course, if you are buying to rent it out, you know the purpose. But what kind of tenants you are looking for is another purpose you need to ϐǤ Ɣ Step 2 - Choose the RIGHT strategy to ACHIEVE what you want to achieve Always plan your strategy. Yes, buy to let is the strategy here. But this is the basic part. At its most basic level, buy to let entails purchasing a property, placing a tenant in it, and collecting rent. But it doesn't end there; even with a simple buy-to-let, there are a variety of options. For example, we must determine whether we will purchase the property with a mortgage or cash. When it comes to buying for cash, most people have the misconception that this entails saving 100% of their money. Ɣ Step 3 - Find the right PROPERTY or the right types of prϐ your STRATEGY Finding the right property for sale is an important part of making money in real estate. After you've established a budget, you can focus your sear ϐ bs that meet your investment goals. These are typically the properties with the highest potential for capital growth and rental income. To choose the right property, keep an eye on the market, check rental yields, make a plan that includes a renovation timeline, and always consult a professional agent. Ɣ Step 4 - Find, Negotiate, Finance & BUY your property Once you have shortlisted the properties according to the right strategy. The next step is to visit and check the value, and then negotiate the terms with the seller, manage your budget and buy the property. Do not forget the paperwork. Ɣ Step 5 - ADD VALUE Remember that you are buying the property to rent it. Now add the value by renovating it. If you want to rent the property to any particular kind of business, you need to renovate the place accordingly and then market it accordingly. This can give you a huge margin in attracting the target audience. Ɣ Step 6 - LET & REFINANCE our property It's worth noting that lenders consider rental properties to be riskier investments than primary residences. Homeowners are more likely to default on their buy-and-hold investments before their primary residences, at the very least. As a result, investment property rϐ ates will differ slightly from rates for primary residences. While terms vary by lender, most rental property rϐ erms offer shorter terms and slightly higher interest rates. However, as of 2022, it appears that 30-year rental property rϐ ates have settled somewhere between 3 and 5%, and while there have been some increases in the last year, there are still some relatively low-interest options available. Ɣ Step 7 - Go again, REPEAT the process While terms vary by lender, most rental property rϐ erms offer shorter terms and slightly higher interest rates. However, as of 2022, it appears that 30-year rental property rϐ ates have settled somewhere between 3 and 5%. And while there have been some increases in the last year, there are still some relatively low-interest options available. Checklist for financing buy to let Remember that before you go fϐerdict, you need to know if your direction is right or not. So, keep the following checklist in your mind. Ɣ Make a list of your invǡ ǡϐ ǡ additional income. Ɣ Look for professional brok ϐ o thousands of different products from a diverse range of lenders, both on the high street and only available to brokers. Ɣ This isn't an internet job; meet with your chosen mortgage broker to discuss your portfolio. Ɣ Remember to account for the additional 3% stamp duty that applies to buy-to-let properties. Ɣ If you do not make your mortgage payments, your home may be repossessed. Depending on the circumstances, a fee of up to 1% of the mortgage amount may be charged. The average fee is £495. Ɣ Understand the costs of remortgaging or selling your home, including any early repayment penalties and whether the mortgage is portable. Ɣ ϐ or tax advice. What's next for you? Research, ask, consult & invest. So, as homeownership remains out of reach for many, the role of landlords and the private rented sector will become increasingly important. House prices are continuing to rise due to a lack of supply, creating a barrier for some wǦϐǦyers. As a result, buy-to-let landlords in the United Kingdom are now providing even more essential housing to thousands of families. While many argue that recent government policy has been anti-landlord, the industry is increasingly asking for changes to make the market more appealing to landlords. So, if it is not the right time to plan yϐ eedom, we don’t know what it is. Meet Jehan and his property ninjas in person If you have your plan sorted out, you may still need a consultant to ensure that your property is perfect for the strategy and you can havϐǤ prepared by Star Sterling under the personal supervision of Jehan Anis. At Star Sterling, Jehan has experienced real estate agents and experts trained to assist you in laying down your plan fϐ eedom through Buy to let. Now, just reach out to the right people, and you will be directed towards the path of successful investments for the future.
