Buy To Let
Despite the short term housing crisis there has been a considerable demand for rental properties throughout England and Wales.
Fact, owning a home is without a doubt a liability (mortgage payments, refurbishment, redecoration, gardening, kitchen and bathrooms etc) outgoing costs on a monthly or yearly
basis taxes your income. But to let allow you to recooup the major outgoings, via the tenant and in the lonng run will provide you with a return on investment.
The form of investment is not for the feint-hearted investor nor is it a get rich quick option; it tends to be a medium to long-term investment strategy. Those with staying power
will be quids in. Emerald Investment Property suggest that investors interested in this option should be looking to hold on to the property for a minimum of 5-10 years to ensure
maximum return on investment is achieved.
Even in today's climate taking time to research social and demographic factors prior to purchasing a property one can achieve medium to high rental yields.
Reasons for buying to let
Chronic supply shortage of new builds
Traditionally good long term investment. Average return on investment over the last 10 years approx 12% per annum.
increase student population will increase demand for accomodation.
Massive population growth will increase demand for accomodation.
Mobile work force and ris eof single occupancy.
Increase in property for sale.
Buy to let insurance and buy to let mortgages remain stable.
Buy to let landlords, capital gains tax down from 40% to 18%.
Social and economic factors point to an up turn in this market.
First time buyers priced out of housing market and are more likely to rent.
It iis generally thought that the current situation will not be long term and will therefore improve.
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