Is there an ideal ownership period for buy to let?

A rent to buy property can be a smart purchase if you have the funds available. It’s always good to have money working for you rather than against.
The minimum average time that investors will hold onto a buy to let property is normally 2-3 years. This gives time for things like planning permission to be granted, renovations to be made, a decent period of occupation as well as potential time for the local market to increase.

Stamp duty

If your buy to let is not your first property you will need to pay stamp duty in Scotland on the new property if its cost is over £145,000.
At the time of writing Stamp Duty in Scotland is 2% between £145,000 and £250,000. It increases to 5% for prices between £250,000 and £350,000 then 10% for properties up to £750,000. There is a higher rate of 12% for anything over that.
The rate pf stamp duty you pay will have an effect on your return on investment and the amount of time you need to hold on to the property to make it work.

Review the market

It’s a good idea to keep an eye on the property market in the area. After your property is being rented you may be looking to hold on to your property for a few years. If it’s profitable then why not? Be aware that slumps in price can occur which could bring a loss on your investment in the future. Get your property valued regularly. If it increases substantially at any point it may be worth selling it.
There’s no set answer as to how long you should hold on to a buy to let property. It depends entirely on the properties circumstances.
If you are interested in a free valuation or a quick sale of your property get in touch today.