Check our FAQs for quick answers to frequently asked questions we receive.
If you have other questions write us a message.
- What type of property developments do you offer?
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At Magna Partners we offer residential buy-to-lets, specifically new builds purchased off plan yet to be available on the open market with developments all over the UK.
- Is Buy-to-let a good investment?
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Buy-to-let properties are an increasingly popular investment as people seek to earn passive income from ever-increasing rental prices. Property prices do fluctuate but if you’re looking to hold property over a longer term, then you’re more likely to generate a profit when you do finally sell, while gaining monthly income during the process.
- What are the benefits of investing in buy-to-let properties?
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There are many rewards – you’ll get a regular rental income, and you can generate more capital growth as the property value increases over time. You can also insure against lost off rental income, legal costs or damages and you can offset costs against tax.
- Where is the best location to invest property?
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The properties we sell, are determined by location and potential yield. So if you’re struggling to work out which one is best to invest, just get in touch. We’ll talk you though our industry knowledge and help you narrow down the best investment for you.
- What are the key factors to consider about property investing?
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Location is key with amenities and transport links as these all increase your chances of finding suitable tenants and maximising your rental income. New build buy-to-lets are always highly desirable. You can talk to us about rental yields – this is the percentage figure calculated by taking the yearly rental income and dividing it by the the total amount investmested in the property.
- What are the tax implications?
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There are a few taxes you need to be aware of – you get taxed on your rental income, and when you sell the property, you might be subject to Capital Gains Tax, however you can offset some of the costs.
- What is the difference between yield or capital growth?
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A strong yield is important because it indicates the level of income you are making from the investment in relation to the purchase price. Most investors choose to invest in property because it gives them a higher and more secure yield than elsewhere. Capital growth is also important because it indicates the price at which you can potentially later sell.
- Mortgage on the property or buy it with cash?
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At Magna Parners we recommend that our investors purchase a property with a mortgage usually because this allows for your capital to be spread across investments, which leads to a greater return in both the short and long term. However, there are excellent investment opportunites that are cash purchases.
- What are the requirements for a Buy-to-Let mortgage?
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It varies from lender to lender but generally the following guidelines: you must have a minimum of £25k a year salary and you must have owned or lives in your current property for 6 + months. The property has to be let under Assurede Shorthold Tenancies, and the maximum loan to value to typically around 75%.
- Can I lose money investing in property?
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As with all investments, there is a risk. But investment property is one of the safest investments you can make. If you’re buying off plan and Below The Market Value, your potential yield increases which in itself reduces the risks. Property for the most part is far better than putting your money in a bank – a 10% yield beats a 0.5% savings rate.
- What about mortgage brokers?
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We recommend that you use verified mortgage brokers as they have access to all available mortgage products from every lender. If you don’t have an existing relationship with a mortgage broker, one of the Magna Partners team can put you in touch with an expert in buy-to-let mortgages.
- What returns can I expect from investing in property?
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It all depends on where you invest, so due your due diligence and talk to us. There are many areas that return a high yield – a good yield is between 6-7%. Student properties can offer a significant return on yield, with the UK yearly average around 7.8% according to Knight Frank.
- Furnished or unfurnished buy-to-let property?
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A buy-to-let property generally achieves higher rents and is rented out far more quickly if it is furnished and for many of our investors, plenty of buy-to-let off plan properties for sale will be sold fully finished.
- Do I need my own solicitor?
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If you do not have your own solicitor, we have access to a panel of legal advisors that can carry out the purchase process for you.
- Are there any building guarantees in place?
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Don’t worry. All of our buy-to-let property developments are built with an NHBC or equivalent building warranty which typically cover any major defects for 10 years.
