Buy to let market seeing good growth
June 2018 saw the buy to let market rise again, applications and completions were up on figures for the same period last year. Investors are without doubt looking to secure new properties whilst mortgage rates are in their favour.
Figures show existing investors are expanding their portfolios especially in the North and South East areas. Increased property values don’t seem to be deterring the investor as they see the future sell on value as the key to profitability.
There was also marked increase of new investors into the buy to let market, with the new pension laws now coming into force a new area of investment has opened up. One new investor commented “the returns we have been getting on our cash investments have fallen every year for the last 6 years”. “We have decided to enter the buy-to-let market to help boost our income in retirement”.
Top tips on buy to let properties
- Choose an area you know for your buy to let investment.
- Make sure the area has potential for growth in the future.
- Do the figure work and be sure of the level of rental income you can expect.
- Think about the type of tenant you are looking for and match the property to fit.
- Check with an accountant your own tax position before you proceed.
- Consider protecting your rental income and explore the options.
- Research mortgage options.
These are just some of the important areas for new investors to consider, but most important is to get the right mortgage for your needs. Too often these day’s clients tend to go for the cheapest without doing crucial research into the features of each plan.
Using an independent broker could be a very shrewd move as they will access to the open market. They will also have the experience to advise you on the correct mortgage to meet your needs.
Can we help?
If you require assistance with your mortgage please call one of our experienced advisers and we will be pleased to assist.