What Is Involved in Buy-to-let Investing?

As a financial vehicle, a buy-to-let investment may be right for you if you prefer investments that offer more tangibility than stocks and shares, or you are willing to tie up your money for a long time period. If you are aware that property prices are volatile and can fluctuate up or down, then you will feel comfortable with this type of real estate offering.

Age Restrictions on BTLs

In other words, you need to be able to afford the risk if you move forward with a BTL transaction. If you want to invest in houses or flats and you possess a good credit record, then a BTL can be a quite attractive option. You also need to be under a certain age to make this type of investment. That is because lenders have upper age limits. For example, you usually need to be between 70 and 75 years old when the mortgage ends. So, if you are 45 and take out a mortgage for 25 years, you will complete it when you are 70.

Basic Differences between BTLs and Regular Mortgages

BTL mortgages are basically like regular mortgages, except for some key differences. These differences include the following:

  • The interest on a BTL is normally higher.
  • The minimum deposit is normally 25%, although it can vary between 20 and 40%.
  • Most BTL transactions are interest-only, which means you do not pay anything monthly, except at the end of the mortgage. At that time, you pay the capital in its entirety.
  • Most BTL lending in the UK is not regulated by the Financial Conduct Authority, or FCA.

Transacting a BTL in Cape Verde

One Cape Verde buy-to-let investment alternative makes it possible for you to invest in an overseas property. With its flourishing tourism market, Cape Verde property investments are seen as lucrative. This type of investment guarantees returns of 7% per year during construction. As a result, investors are ensured a flexible and safe investment option.

What Happens after the Resort Opens?

BTL transactions for tourist-associated structures allow investors to place their money in a five-star luxury resort property. Once the property is opened, investors can realise a 5% net rental yield and participate in a five-year resale plan.

Where Cape Verde Is Located

Needless to say, when you concentrate on this type of BTL transaction, you are embarking on an investment journey that is both popular and guaranteed. Cape Verde itself is situated on a volcanic archipelago off of the northwest coast of Africa.

An Archipelago

Also referred to as Cabo Verde, Camp Verde was once a Portuguese colony. The country and archipelago features five islets and ten islands, all of which are mountainous, except for three. The span of islands stretches for 500 kilometres.

Needless to say, tourism always draws buyers or renters to real estate. That is why location is important in a BTL transaction. If you see the location of your property as instrumental to your investment potential, then you should consider an overseas investment. By allocating your money in this way, you can invest in your property without reservation.

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