House prices have seen some turbulent times however the buy to let (BTL) market seem to have a very clear and bright future. Whilst houses prices have now gradually increases with residential lending up by 9.8% the BTL has increased by 25.3%.
Whereas previously landlords had the lower hand by trying to find suitable tenants, the tables have now turned and landlords are picking and choosing who they would like. Tenants are finding it very difficult to obtain suitable private housing for rents which they can affords. Some landlords have decided to charge extortionate rents as means of cashing in as quickly as possible.
Clients of busy residential firms, such as Wildings, have been approached by prospective tenants before completion has taken place on properties. Those buyers who have healthy deposits are able to buy properties and in turn let them out for good rental returns. This has also worked well for children who are in good paid jobs but living at home with parents, whilst they may not be able to move out completely they can at least get on the property ladder and save whilst receiving surplus funds from rental returns.
Things to consider if buying an investment property to let:
1) Always use a good financial adviser to obtain the best possible mortgage rate if you are buying with the aid of a mortgage. Solicitors who have close relationships with advisors would be able to point you in the right direction.
2) Always use a good solicitor who can complete matters quickly
3) Purchase a property that will be easily let, thus areas which are close to schools, supermarkets and have good transport access.
4) If new to the market, use a good local reputable letting agent to vet any perspective tenants
5) Obtain a healthy rent deposit secured by a rent deposit scheme
6) Ensure the property is visited to review its condition
7) Building a healthy relationship with the tenant always proves very useful.
If you would like to speak to a friendly team with over 30 years’ experience contact our Land lord and tenant solicitors today.