buy-to-let

Investment property is real estate property that has been purchased with the intention of earning a return on the investment, either through rental income, the future resale of the property or both.

Source: Investment Property – Investopedia

Buy-to-let is usually a secure source of income. We recommend it seldom to first-time investors in real estate looking for monthly income.

It can come to situations when rental costs are much higher then revenues and renting is not much of a solution for the investors. We found some indicators that can signalize this point in a buy-to-let property’s life.

Signs it’s time to sell your investment property

However, the good part is that an investment property rarely becomes a lose-business. When renting is not creating the profit wished for, you can always sell it for the right price.

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Landlords have been the target of some serious new taxes and regulations. Although these are worrying for some, these measurements are not an end of the rope for most.

For those of you considering investing in properties, keep in mind this:

long-term investments will surely bring you a good profit. New research showed that investing in buy-to-let, but not on an amateur level, will bring the landlord a stable and consistent source of revenue.

More details and a good case analysis in this article on Property Reporter:

How much could an average long term property investment earn you?

If you’re thinking about investing in a buy-to-let here are our property recommendations from the Victor Michael website:

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UK landlords face more pressure with costs rising over the last few months. Latest studies show that the market is almost at half the average in UK.

Number of homes for rent in London is 46% below the national average

The buy-to-let is one area in which landlords feel the high pressure, since the costs here have been continuously rising.

Each side of the coin is equally affected: the landlords and the tenants that are swimming in a cold market.

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According to a recent report, the UK has seen growth in the number of mortgages for non-standard borrowers, such as for buy-to-let landlords and lifetime mortgages. Since 2009, there has been a 19% increase each year to the value of the mortgage lending companies annual lending. These companies have seen their lending amounts increase to £17 billion per year in 2016, a significant increase on the £5 billion that was recorded in 2009.

The specialist lenders are said to be in a very strong position despite the previous ever changing nature of the market, and that they are capturing the ongoing growth in the number of the UK’s non-standard borrowers that mainstream lenders may not look to work with.

Read the full introspective article that explains the growth in mortgages the UK is seeing lately on Property Division.

UK’s Specialist Lenders See Non-Standard Mortgages Growth

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Photo source: Property Division http://bit.ly/2hKFy8Y

Valuable advice for Buy-to-Let landlords to be ready for 2018:

1. Mortgage Interest Tax Relief Changes

2. Utilising Airbnb To Avoid Void Periods

3. New PRA Rules For Portfolio Landlords

4. New Minimum Energy Efficiency Standards (MEES)

5. London House Prices & Rental Yields

More in this article on Property Division:

5 THINGS BUY-TO-LET LANDLORDS NEED TO KNOW GOING INTO 2018

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