A Buy-to-Let relates to a property bought with the intention of renting it out rather than living in it.
A Buy-to-Let property is an income-producing property investment, with potential for making a capital gain when the property is sold. An investor buys a property and makes money on their investment by renting out the property in the short term, with the long term goal of making a profit on the property when they eventually sell it. Buy-to-Let property is generally seen as a stable, medium to long term, low-risk investment and has become a very popular income generating scheme.
Those purchasing Buy-to-Let property usually fall into one of the two categories; the investor with a portfolio of properties that is using rent from tenants as their sole income, or an investor that is looking for an added income stream by having one or two homes that they rent out.
In the present investment scenario, investment in income producing property is widely considered as an attractive investment option compared to bank saving deposits which offer low interest rates or investment in the risky and uncertain stock market.