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Investing in bricks and mortar has long been top of the list when it comes to finding ways to protect that pension pot. Buy-to-let has always been an attractive option, especially when compared to the low savings rates offered by most banks, and the unpredictability of the stock market.
With rental incomes steadily increasing over the past few years, and demand for rental properties remaining strong, it is easy to see why the experts are staying optimistic about the future of buy-to-let.
It has not been without its problems, and most recently, the tax changes and rising interest rates have seen landlords wobble.
However, simply put, there are not enough homes, people cannot buy, and the need for rental properties is still great.
Here at Aston Anderson, our expert staff have helped hundreds of people find the right buy-to-let properties and let them successfully over the years. If you are considering investing in the buy-to-let market, then let Aston Anderson be your guide…
The sums behind buy-to-let success is simple.
Right property + right mortgage = rental yields of 5-10%
Starting with the first part of the sum, you need to find the right property, and more importantly, you need to find it in the right area.
Kent has long been considered a property investment hotspot, with areas such as Gravesend, Dartford and Sevenoaks attracting attention. Fast links into London, as well as Paris and Brussels via Ebbsfleet, paired with the reasonable property prices, has made this region an attractive option for capital and growth.
It can be daunting to navigate the buy-to-let market somewhere, especially if this is your first time, so ask the experts.
Local property lettings listings are a great place to find the lay of the land, and speaking with one of our Aston Anderson sales and letting agents will help you discover which properties on the market would be good investments, and what to expect from letting it.
Buy-to-let mortgages might not be what you expect. They usually tend to be more expensive and require a bigger deposit, so it pays to shop around.
There have been some interesting developments in the market with some high street banks offering 10 year fixed-term mortgages and new contenders such as Sainsbury’s Bank extending its mortgage range to include buy-to-let lending.
Don’t forget to budget properly. Your rental income needs to be at least 125% of your mortgage interest payments and you must remember to factor in all the other costs now – getting the property ready to let, maintenance, insurance, times when the property may be empty between lets, and those all important fees.
This is probably the biggest question you need to ask yourself! It is easy to think that you can do it all yourself but you need to be aware of the time pressure and responsibility you could be putting yourself under.
Are you going to be able to show the house yourself? Can you do all the checks and paperwork required? When tenants have a problem, the expect an immediate solution. Are you ready to deal with it?
You could be better off with a full management letting service in place as an agent will be able to take the pressure off.
If you are unsure on what is involved, a great place to start is the Aston Anderson Landlord Guide or contact one of our expert letting team to find out more.
Finding a tenant can be the biggest headache at all, and that is where your local estate agent can make the biggest difference.
According to the recent ARLA Propertymark Private Rented Sector report (April 2018), each estate agent branch now has and average of 72 prospective tenants registered. This database can be invaluable when it comes to renting out your property.
Leaving a property empty is just money down the drain, so the faster you can fill it, the better for your bottom line.
For most Britons, the thought of an investment property is an attractive one and the buy-to-let market is remaining buoyant despite the challenges, but it can be just a little nerve-racking.
Luckily, if you are looking to enter the buy-to-let market in Kent, Aston Anderson have all the advice, support, and expertise you need.