2014 saw the 18th anniversary of the first buy to let mortgage which was launched in the UK in 1996. A report by a major UK lender in this specialist area advises that buy to let landlords have:
“… made £12,000 profit on every £1,000 they put into property since mortgages for landlords were first launched in 1996 – returns that have far outstripped every other type of investment” and also “landlords will continue to make an average of 11% a year for the next decade”
So if a buy to let investor is looking at the market now what should they take into account? Interest levels are important whilst currently at a historically low level these are set to rise and therefore the cost of the lending could have a significant impact on the net yields of your buy to let investment. Yields and return on investment should be the primary objective if the income does not cover the costs of the investment then this will eat into any capital appreciation.
Research! Research! Research! is the key, on location, demand generators, potential for the area, target audiences of tenants and managing the property. Buy to let investors have more choice now than before when looking at buy to let property as an investment. Rather than just a house or flat they can look as commercial projects and specialist student accommodation as well as the traditional residential house or apartment. Some schemes are eligible for finance some not and some come with rental assurance schemes. It is important to evaluate any investment property fully before making any commitment. Investment property Consults are very experienced in this arena and are happy to assist in the selection and securing of any buy to let investment to suit buy to let investors goals and objectives. For more details please contact us