The unfortunate fact is nowadays that you can only get a healthy return on your savings by putting them into high-risk ventures such as the stock market. Savings accounts only pay a low interest on your deposits, and it is not worth keeping your money there anymore.

Some people decide that enough is enough and look for other ways to invest their hard-earned cash. Property has never looked as attractive as it does now, and with house prices still on the march upwards, people are prepared to put their money in bricks and mortar.

Homes for rent are in demand at the moment, and that is set to continue as the masses cannot afford to buy a home. If you want to take advantage of the situation and have your slice of the pie, perhaps you should think about becoming a landlord. It’s easier than you think if you can handle the mathematics. The people at Hamptons investment property in Sherborne see many clients on the lookout for property to rent out. Here is how to build a healthy portfolio and make money from it.


The first step is to acquire property, and you can do it with a mortgage. If you own your home, the banks will look upon it as collateral for a new loan. You must take out a buy to let mortgage at the going rate and buy a suitable property. You are on the first step of the ladder to greatness.

Make sure that you can make extra payments on the mortgage you take out so that you save money on the interest. Repayment mortgages are ideal for that. The sooner you pay the mortgage down, the better, and it is the rent from the tenants that will cover it.

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The rent that the property will command is mainly affected by three things; location, size, and condition. People will pay a premium to live in affluent areas, and it will make a difference to your income. The mortgage for a property in a posh area will be higher than on the council estates though, so you must do your sums carefully to make sure that the rent covers it. In fact, you must aim for a target of thirty percent above the monthly cost of the mortgage. The profits might not be high in the beginning, but the house will soon start to work in your favour.


I advise you to use a letting agent to manage the property for you. They are experts in the field and have a talent for finding the best people for the house. They will handle all aspects of the lease and make your life comfortable. The services are well worth their commission.

When you handle your business well, the banks will look favourably upon you for loans in the future. Repeat the process and add properties to your portfolio when the time is right. As long as you don’t overreach, the risk is minimal. I hope you can succeed in this booming market; I am enjoying the benefits of it too.

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