Historically low interest rates, special buy-to-let mortgage schemes and strong property prices have attracted many thousands of people to become amateur landlords. So if you are contemplating investing in bricks and mortar this year, what are some of the things you need to consider? It’s really important to do your homework and have a clear plan of what it is you want to achieve.

Income or capital growth
Before you consider investing in property, you should decide whether your aim is to generate regular income, capital growth or both. Be prepared to tie up capital for a considerable period and be aware of the tax implications of buying and selling a second property. Profits are taxable and an eventual sale may incur a future capital gains tax liability.

What next?
Who will manage your property? Many landlords choose a managing agent to look after their property. You will also need to take legal advice to draw up a renewable assured shorthold tenancy agreement for a minimum initial period of six months.

Knowing your local market is essential to success, and this is where it can be very costly if you get it wrong. Location is crucial, as is access to parking and transport services.

And then there is the funding! Mortgage terms vary widely, many providers stipulating a rental income of at least 125% of mortgage costs. Do your sums before you start.