Financing

If you have enough money to buy the property outright then that's great, but if you need a mortgage there are a few things to consider. Most banks will only allow this for parts of Europe as they have more chance of getting their money back should things go wrong.

Lenders tend to approve a buy to let loan on the expected rental income from the property, as opposed to the applicants' income. The mortgage company will also consider the location of the property and how comfortably the rent will cover the mortgage payments, and also the experience of the landlord. You need to be a homeowner and have a minimum 15% deposit. When working out the figures for your Buy to Let loan your monthly rent should be at least 130% of your mortgage repayment, and give you an annual yield of more than 8% of the mortgage.

As for the legal stuff this varies from country to country and it is important that you get help from a solicitor that know the market well and has a good, established reputation. This is where your friend the estate agent can help. By now you should know whether you can trust any recommendations they offer or whether they are just after their commission.

Whilst investing in property takes effort and a great deal of patience, the rewards over the long term can be impressive. You should research as much as you can, however not to the point where you have 'analysis paralysis' and subsequently take no action. In summary, do your research and you'll be well on your way to either increasing your portfolio or starting out in property investment.

More people than ever are looking at buy to let property. They want a second home they can enjoy an appreciating capital asset and the opportunity for rental income.There is no better way to make money quickly and with low risk than investing in property in the right location. More investors than ever are looking to buy to let overseas as properties are cheaper capital growth potential can be up to 100% per year and in the right area rental income is great.

However, there are two simple facts that the majority of financial advisers and mortgage lenders agree upon and these may help you make your decision:

- taking the money that has built up in equity on one property and using it to buy another property is probably the most sensible thing to do when releasing equity
- over the medium to long term real estate as an equity class is one of the most consistent returning investment mechanisms.

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