Buy-to-let is dead! A recent news article informed us all recently.
And with the recent changes to buy-to-let mortgages, increased tax implications for buy-to-let landlords and a cracking down on property laws, it would be very easy to get caught up in the negativity and start looking elsewhere for somewhere to invest your hard-earned cash.
However, we’re here to tell you that property is still one of the best investments you can make. Of course, it needs to be done with caution and an educated, informed strategy and exit plan, but there are still some excellent yields to be made.
Here are a few of our top reasons for continuing to fly the flag for property:
This means that you can buy your investment with a deposit (unlike stocks and shares) which allows you to benefit from the growth of assets worth significantly more than your initial outlay. For example, a property worth £100,000 bought with a deposit of just £30,000 would out-perform the growth of any other kind of investment for this amount, with just a 10% increase in property prices.
A recent survey carried out by ‘Totally Money’ found rental yields of between 9 - 10.9% in certain areas of the UK. Location is obviously a huge factor to consider, but we’d be happy to provide you with some pointers about the best areas to invest in.
Students represent a large (and rapidly growing) demographic in the UK, whose transient nature means they will almost always have a need to rent large properties that they’ll live in communally – properties that the government is trying to free up for families and first time buyers. There is nowhere near enough purpose-built student accommodation available to service their needs which means they’re overflowing into the stretched residential market. As the UK’s highest yielding property sector since 2011, it’s most definitely worth considering.
An increasing amount of landlords are adding commercial property to their portfolio because of the high yields and typically longer leases. In addition, commercial tenants take on many of the costs a private landlord would have to deal with in the residential market, such as: The cost of repairs, insurance and business rates.
Even with all the doom and gloom cast about residential buy-to-let, there’s no denying that the private rented sector will grow, in whatever form, very significantly over the next few years.
A recent survey from Knight Frank suggests that as many as one in four Brits will be renting by 2021. This offers a huge opportunity that any investor worth their salt would be foolish to overlook.
As with any investment, the key to success lies in diversifying your assets and arming yourself with knowledge. We have a team of property specialists on hand to talk to you about our tried-tested and validated investment opportunities to ensure you’re able to get as much bang for your buck as possible.