In the past, landlords with a portfolio of investment properties could be reasonably confident that they would have secure investment income for retirement or just general use. Over the last few years, there have been a lot of changes affecting investment properties, so is Buy to Let still a good idea?
The days of soaring house prices like we saw in the late 1990s and early 2000s are over, but this doesn’t mean there’s no money to be made for landlords now. During this time, average property prices in the UK went from £62,302 to £162,451 [source]. Property prices have been increasing at a steady rate since then, but we are not seeing such dramatic rises. This means landlords can’t cash in by selling their properties quickly when property prices soar, so it is less likely to suit short-term landlords.
Landlords who purchase properties for Buy to Let and intend to hold onto them for the long term will benefit from regular rental income, as well as a return on their investment when they decide to sell, thanks to the steady rise in property prices.
If you’re considering entering the world of buy to let, there are a few things to consider. Landlords must pay stamp duty and are subject to tax on their rental income, so you should include these figures s when making any calculations on purchasing and renting property.
Landlords also must adhere to several regulatory laws, including having an Energy Performance Certificate with a minimum rating E and electrical and gas safety checks every five years and every year, respectively. Potential landlords should factor in the costs of having these inspections carried out when calculating potential returns.
Another thing a potential landlord should remember is that there may be times when your property is unlet and not yielding any income. This lack of income can be tough to budget for. One way to minimise this is to use an established estate agency that will work hard to ensure your rental property is well marketed.
We work hard to ensure you get the best value and the most exposure for your property. We do all the viewings and coordinate everything to find you the best possible tenant. Once the property is rented you can also take advantage of our Letting Management service for a truly hassle-free experience!
From helping you find the right Buy to Let property and throughout the rental process we are here to help! Get in touch with our team today if you’d like to know more about our Buy to Let services. Give us a call on 029 2062 6252or email lettings@thomashwood.com and one of our team will get back to you as soon as possible.