According to The Association of Residential Letting Agents there are now more potential tenants than there are properties available to rent as more people looking to move are unable to acquire mortgages or find suitable properties to buy as the market for buyers has considerably slowed due to the recent financial downturn. This faces a marked volte face in contrast to last year’s trend and points to the buy to let market beginning to burgeon once again as a sound investment opportunity.
In these somewhat precarious financial times the value of people’s pensions is being diminished at an alarming rate and many people after a lifetime of paying into pension funds and savings are facing the prospect of being left with insubstantial or inadequate funds to live on in their retirement. In such situations a regular income from letting could provide a more stable and secure source of income. Not only of interest to the more mature population looking for an alternative to a traditional retirement fund, buy-to-let can be a great investment for anyone looking to buy into an investment opportunity. Property is a more reliable form of investment in the long-term but the keyword here is long-term.
As the market fluctuates and property prices have admittedly recently fallen, it is important to remember that buy-to-let should be seen as a long-term financial investment not a short fly-by night quick buck opportunity. Being a landlord is a responsibility but will provide a secure regular income throughout its duration. Using a letting agency is advisable in order to avoid the day to day hassle and for the inexperienced can help to ensure it doesn’t become a full-time job as vetting clients and dealing with day-to-day maintenance and problems can quickly become overwhelming for the inexperienced turning your investment into a nightmare. An agent should relieve you of these potential pitfalls and allowing you to sit back and reap the rewards of your investment.
Keeping the property in good shape and well maintained is a must. An ideal situation for any landlord is happy tenants wishing to rent the property long-term as they will provide a consistent form of income for the landlord and will treat the property with more respect as they have a vested interest in maintaining a higher standard of living for themselves. Whilst the maintenance of the property is a shared responsibility the landlord should remember that the property is owned by them and keeping the value of the property protects the initial investment and will help to keep its income as high as possible. At some point in all likelihood the landlord will wish to sell the property liquidising the asset and the recoupment of the initial investment and the maximisation of the profit will be vital to ensure the investment gives back.
In short buying in order to let should provide two income streams; rent from the tenant which can initially ensure the property pays for itself and the bricks and mortar asset of a property.
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