Why Now Is the Time for Buy to Let
Parmdeep Vadesha
September 30, 2008
You have been working hard for many years and expect to eventually have a solid pension to show off as the fruit of your labour. What better way to put your money in the right place than by getting your foot up on the property ladder. Buy to let property investments have been around for centuries and they have historically offered superior returns compared with many other investment opportunities. Many property investors have found success in buy to let – and there is no reason why you shouldn´t, too. Definitely, there is no better time to grab a buy to let property investment for yourself than today.
In the midst of what seems to be a globally felt economic recession, is there a place for property investment in the United Kingdom? Yes, look around you and you will realise that there is a scarcity of properties in the country. The UK needs more places to live in! The cost of housing has risen to astronomical proportions in recent years, thus making housing restrictive and unaffordable for most people. Coupled with the huge rise in immigration into the UK, then you have a major housing crisis. This means the rise in the demand of residential properties for rent. In fact, the average price of rent in the UK has steadily risen in the past few years and expected to continue to do so. Therefore, use this economic downturn to your advantage and invest in a cheap buy to let property.
If this does not convince you just yet, let me give you more reasons why now is the time to get yourself your very own buy to let investment:
Mortgage rates are on the rise.
And how is this good for me, the buy to let investor, you may ask? On the contrary, this strange and unfortunate reason just might be the key to your buy to let success. The continuous interest rate hikes means that more and more potential homeowners are shying away from purchasing their homes and putting it off for the meantime. This group of starter families or young professionals would be the perfect candidates as your future tenants. Having scrapped buying a home off their list, these Brits would prefer to rent in the meantime, thus providing you with a ready market for your buy to let investment.
On the flip side, the rise in mortgage rates also mean that more houses and properties are being repossessed from homeowners who can no longer afford to keep up with the monthly repayments. While this is indeed very unfortunate news, this translates into good news for the property investors. You can easily purchase a property for investment at a bargain price well below market value.
Rentals rates are at an all-time high.
With more people putting off a home purchase in the meantime, this means a higher demand for rental property. Hence, a buy to let investment is just what the UK needs at this very moment. The high demand for rental property also means that you as a landlord can charge a much higher rate for your property. In fact, figures from the Halifax House Price Index as of June 2008 show that rates have risen over 14% from last year. Thus, there is no time like the present. Act now, or you just might regret it.
In the midst of what seems to be a globally felt economic recession, is there a place for property investment in the United Kingdom? Yes, look around you and you will realise that there is a scarcity of properties in the country. The UK needs more places to live in! The cost of housing has risen to astronomical proportions in recent years, thus making housing restrictive and unaffordable for most people. Coupled with the huge rise in immigration into the UK, then you have a major housing crisis. This means the rise in the demand of residential properties for rent. In fact, the average price of rent in the UK has steadily risen in the past few years and expected to continue to do so. Therefore, use this economic downturn to your advantage and invest in a cheap buy to let property.
If this does not convince you just yet, let me give you more reasons why now is the time to get yourself your very own buy to let investment:
Mortgage rates are on the rise.
And how is this good for me, the buy to let investor, you may ask? On the contrary, this strange and unfortunate reason just might be the key to your buy to let success. The continuous interest rate hikes means that more and more potential homeowners are shying away from purchasing their homes and putting it off for the meantime. This group of starter families or young professionals would be the perfect candidates as your future tenants. Having scrapped buying a home off their list, these Brits would prefer to rent in the meantime, thus providing you with a ready market for your buy to let investment.
On the flip side, the rise in mortgage rates also mean that more houses and properties are being repossessed from homeowners who can no longer afford to keep up with the monthly repayments. While this is indeed very unfortunate news, this translates into good news for the property investors. You can easily purchase a property for investment at a bargain price well below market value.
Rentals rates are at an all-time high.
With more people putting off a home purchase in the meantime, this means a higher demand for rental property. Hence, a buy to let investment is just what the UK needs at this very moment. The high demand for rental property also means that you as a landlord can charge a much higher rate for your property. In fact, figures from the Halifax House Price Index as of June 2008 show that rates have risen over 14% from last year. Thus, there is no time like the present. Act now, or you just might regret it.
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