You can profit by owning houses
other people pay for!
With the uncertainties in the
stockmarket, more and more people have turned to investment
in residential property as a home for their hard earned
cash. The attractions are not hard to see. If done
properly you can build up a portfolio of residential
property paid for by someone else!
However as
with other forms of investment it is essential to take
the right advice. Buy to Let isn't for everyone. It
is important to be aware of the pitfalls of residential
property investment as well as the prizes. Some “quick
fix” investors are choosing the wrong properties, in
the wrong locations, at the wrong price, and managing
them badly. It is essential to get the sums right.
Buy
to let is not a short-term investment. It is medium
to long term – 10/15 years
is fairly standard. Investment needs to take account
of both capital appreciation and rental yield.
Those
involved in the private rented sector generally agree
that tenant demand is likely to grow significantly
and steadily over the next few years. A number of factors
are behind this:
•
The
increase in the age of the first time buyer from
21
in
1988
to 34 today
•
Increasing numbers
of people who choose to live alone or who need
to because of growing marriage breakdowns.
•
The house price
boom which has made it increasingly difficult for
young people generally to get on the bottom rung
of the housing ladder.
•
Changing attitudes
among young people to traditional long term mortgages
•
Increasing job mobility
and contract working.
•
Loss of homes through
repossessions
All
Buy to Let investors need to keep a close eye on the
housing market, which is currently undergoing a period
of change and some uncertainty. We would urge any existing
or potential buy to let investors that are nervous
about the next year or two to pop in for a discussion.
We
have many years of experience in residential management
in West Lothian and can offer knowledgeable and practical
advice. We believe that through our services we can
play an important part in maximising property investments.
Too
many landlords are vulnerable when unwittingly dealing
with unregulated agents and when market conditions
get tougher we know that our clients need sound advice.
Proper research and local advice from accredited agents
such as those with NALS endorsement – can help landlords
and investors to decide whether to enter or indeed
leave the market.
