Support, Advice and Experience within the Property Market

Buying to let, is now the right time?

From admin on June 15, 2015

This week I thought I would revisit advice on buying to let – the subject, perhaps unsurprisingly, I get most questions about. If you are considering buy to let as an investment and you have the money to do so or are looking at dipping into your pension pot, is now a good time to invest and what should you be buying?

As letting agents we know how strong the local rental market is and as such are finding an increasing supply and demand shortfall. This all means that rents are healthy and property prices locally have continued to climb at a steady and manageable rate, providing a stable property market. So yes it is a good time to invest, but as I would always advise please do your research.

I have seen too many first-time investors who have bought their buy to let property almost on a whim. They may have bought in a certain area because they liked it but it might not mean this is the best area for renting the property they have. So I always look to advise how to get the best return on their investment in terms of where to buy, what to expect to pay for the property and what return to expect in rental income.

It amazes me when I hear that some of these investors who seem to have bought on a whim will tell me they had in fact taken advice from an agent, so again please always remember who the agent is working for. The agent will be looking to get the best price for their client, therefore it is always worth speaking to a number of agents before taking the leap. As well as initial sale price you will also need to look at what rents have been achieved in the past, how long it will take to let, what your potential outgoings will be for the property, also what is required of you as a landlord and more importantly what regulations you need to adhere to.

These are all the questions I am being asked constantly by my investor clients and the good news is my initial advice is always free, all I do ask is that come and see me before you even start looking as there are a few things you have to be aware of before even deciding what to buy and how much to spend. At the very least, with the minefield of legislation, I must recommend investors speak to a professional licenced ARLA agent, as we need to know our stuff and are up to date with legislation. ARLA membership requires us to know not only the fundamentals of letting but also carry out Continuing Professional Development which ensures we are up to date with any recent changes and as you may have seen from my previous articles there are plenty of changes in legislation that landlords need to be aware of.

As always if you have any question on this week’s subject please do not hesitate to call or email me on the details below.