Buy to let property
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Buy-to-let property has been one of the great UK investment phenomena’s of the past 10 years. Investors increasingly view property investment as an attractive alternative to other types of medium to long term investment such as equities.
The attractions of buy-to-let property are numerous: steady long term capital growth, minimum volatility and the potential for good rental income.
There is a strong demand for buy-to-let property due to the ever increasing amounts of immigration, divorce rates, people seeking greater independence at a younger age, students and the high cost of getting on the property ladder.
Buy to let property investment
In the UK investors have viewed buy to let property investment as an excellent long-term investment. The UK buy to let property market has benefited from a dramatic rise due to an an estimated short-fall of 500,000 residential properties. Michael Ball, Professor of Urban and Property Economics at the University of Reading Business School, recently forecast an average growth in numbers of UK buy-to-let tenancies of 20,000-30,000 a year over the next ten years.
Overseas buy-to-let property, sometimes referred to as fly-to-let property, has similarly experienced strong growth. This growth has been predominantly driven by investors looking to attain potentially better returns than are currently available in the UK, or by people looking for a holiday or retirement property that finances itself.
Buy to let property advice
Care should be taken, not all buy-to-let properties are cash cows! Buy-to-let property is an investment, and like any investment there is a degree of risk. Whilst the optimum situation is to attain good yields and capital appreciation, this is not always achievable and sometimes you must consider what your investment priority is.
Is your priority achieving a good yield, (where the rental income outstrips the costs associated with running the property, such as mortgage payments, repair costs) or capital appreciation? Have you thought about potential void periods (this where the property is empty of tenants)? If overseas, have you considered the associated legal and tax structures?
Propertyinvestment.co.uk can help you identify your buy-to-let property needs, assess any risk and help minimise it.
