Is buy to let investing
The UK’s buy to let sector has come a long way in the past few decades, growing from a small, niche market into a multi-faceted,
lucrative area of the property sector.
Buy to let to is generally accepted as one of the best asset classes around, with returns consistently outpacing stocks, shares, and gold over the past few years. With more than two million private sector investors now owning over £1 trillion worth of homes across the UK, buy to let has become a mainstream consideration for buyers from all around the world.
How to get started
with buy to let?
For people getting started with buy to let property, it is important to establish your objectives before investing.
It is a great idea to seek independent financial advice to determine your budget and long-term financial obligations. Establishing your outgoings including buy to let mortgage repayments, insurance, and management costs for example, will give you a clear overview of how to balance your books.
Buy to let property appeals to first-time investors as it offers the opportunity to secure a monthly rental income and capital growth when they come to sell the asset.
The tangible nature of property and the simplicity of renting out a property for profit is also a draw for first-time investors.
For those starting out with buy to let, contacting a trusted property consultancy like Town Square Invest is a great starting point. Our experienced team can answer your questions and present specifically sourced opportunities to suit your budget and requirements.
What’s in the guide?
How have recent changes to buy to let investmentaffected UK property investment?
Since 2015, the UK government has introduced policy changes to improve buying conditions for owner-occupiers.
For landlords and property investors, this wave of recent changes will have an impact on the buying process, taxes and returns.
Policy changes include:
Despite the introduction of these changes, the UK’s buy to let market remains a strong contender for investors and, when compared to international markets, real estate in Great Britain continues to offer exceptional value for money.
Buy to let hotspots 2021
Trends outside the capital in recent times have given investors an insight into just how much regional markets have to offer. In areas such as the north-west,
north-east and the Midlands - specifically places like Liverpool, Newcastle and Manchester - buyers can find properties that are considerably cheaper than those
available in London, with greater scope for capital growth in the coming years.
Properties with excellent transport connections have traditionally kept their value due to demand from buyers and renters outstripping the supply chain.
Towns in London’s commuter belt including Brentwood have benefitted from a rise in the number of city workers leaving the capital due to the pandemic and taking advance of flexible working. For investors, commuter belt locations with fast access into the capital will offer reliable rental returns and strong growth potential – especially if they are situated on the new Crossrail route.
Buy to let mortgage
Interest rates have been historically low for the past decade and in light of the pandemic, the Bank of England cut rates to a record low of 0.1% in March 2020. Rates will inevitably climb over time however,
if the last 10 years have taught us anything, any increase will be a slow and steady pace.
Low interest rates are great news for investors looking to purchase property with a buy to let mortgage. With plenty of mortgage products available it is vital you seek independent advice to secure the best deal for your requirements.
Is overseas property
a good investment?
Before investing in a UK property, it is always important to consider your motivations and what you want to achieve from your investment.
A buy to let property investment provides investors with the opportunity to secure a monthly rental income and house price gains over time however, it is advisable to establish exactly what you want to achieve before investing.
Why act now?
Despite the pandemic, UK property values increased by over 10% year-on-year and is showing no signs of slowing down.
If you have been considering investing, now is the time to act. Unlike stocks and shares, property is one of the most stable ways to invest your money, and you will generate a better return than holding it in a bank that offers low interest rates.
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