There has been a lot in the news lately about the buy-to-let market. Indeed, recent changes to tax and regulations have led some to claim that it is no longer a good investment.
For example, mortgage-interest tax relief has been restricted for landlords, and the 3% stamp duty surcharge will also be added from April this year. In addition, repairs for wear-and-tear are also becoming more difficult to offset against tax.
But the truth is that buy-to-let remains an excellent investment – as long as you go about it in the right way.
Demand Is Still Huge
This Is Money recently provided a number of tips for landlords to ensure they are still onto a good thing when they purchase a property to let. It quotes figures from HomeLet that claim average rents are £743 in the UK and £1,544 in Greater London, and such rents should still prove very tempting to potential landlords.
It also highlights the fact that demand is still enormous for rented properties. Many people cannot afford to buy a property, so they are renting instead, especially in London and the South East. Population growth is also rising, and it’s a simple question of supply and demand – leading to great opportunities for landlords.
Key Suggestions to Succeed with Buy-to-Let
The article lists a few recommendations for landlords in order to get the most from investment properties. These include:
- Buy properties in important employment areas. It quotes a figure from Knight Frank that 52% of tenants choose their properties based on where they work. Large employers include private companies and hospitals.
- Get a mortgage. Even if you can afford to buy a property outright, it can still be worth getting a mortgage because you can get some tax relief.
- Find out what your target tenants want from a property. Some tenants will prefer furnished properties while some will prefer unfurnished. Younger tenants are more likely to want furnished or part-furnished, while families are more likely to have their own furniture. It depends on your location and who you are targeting.
Get Expert Advice Before You Buy
The buy-to-let investment market is still an excellent option for landlords, but now it is more important than ever to make your investments wisely. That’s why expert advice is essential.
When buying a property for investment in London or the Home Counties, I can provide you with the sort of in-depth advice that can make or break your investment. With expert local knowledge and a vast network of contacts, I find my clients the best properties at the best prices.
This can prevent you from making a bad decision based on your inexperience, allowing you to take full advantage of your buy-to-let investment.
Call Richard Mottley on 07769 325758 for further information or submit an enquiry here: http://sanderlinghomesearch.com/contact