According to Caboodle Finance, it is true to say that many yacht crew members do not know where to start when it comes to buying a property they wish to use as an investment, and subsequently rent out. Some crew want a particular type of property whereas others want property in a specific area. In reality, there is no wrong or right. But there are certainly some important factors to consider when choosing which property to buy.

Keep on reading for a coherent list of tips from Caboodle Finance. These should be useful in enabling you to understand better how to spend your well earned yachting wages on a buy-to-let property.

Buy-to-let property

Key Considerations

  1. What rental income the property will achieve – This is very important as it will dictate what surplus income can be achieved after the mortgage and other costs have been deducted, but more importantly for many people the projected rental income will significantly influence the amount of mortgage a lender will provide.
  2. What type of property you should buy (I.e. house, flat, multiple-occupation property) – Again this can sometimes come down to preference and the area the property is being bought in, but there are sometimes restrictions in relation to the mortgage available if the property is for example in a high-rise block or if it will be let to a number of different tenants, each with their own tenancy agreement (commonly known as a House of Multiple Occupation – HMO)
  3. How much of a deposit you want to commit to the purchase – Typically when buying a property you are going to rent out the minimum deposit required is twenty-five percent of the value, or purchase price. Clearly the higher the property value the bigger the deposit you will need to put down, and of course the deposit amount could also be dictated by the size of mortgage available based on the rental income the property will generate.
  4. Who will manage and look after the property whilst you are working away – Many landlords employ a letting agent whereas others manage it themselves, with the help of family and friends.

Closing Notes

Mortgage lenders have different rules and criteria when it comes to assessing how much they will lender to a particular buyer based on the property they want to buy, so there is no “one size fits all” rule. This is why many investors and landlords choose to use the services of a specialist broker, like Caboodle Finance, who will know and understand the various complexities surrounding buy-to-let property, especially when it comes to seafarers as additional criteria factors apply.

To keep up to date with the latest Superyacht Content News, click here.

Sign up to our Newsletter below:

Newsletter Signup

Related articles