To Buy Or Not To Buy…
Why You Should Expand Your Buy To Let Portfolio In 2017
2016 has seen many markets suffer a decline and the value of investment drop somewhat dramatically with high-profile political events across the globe having an impact on the economy.
The dust might well settle in 2017 and it’s now time to think ahead and cpnsider which investments are worth making. The growth in house prices continues to be significant, forcing families and would-be first-time-buyers into the private rental sector.
So, despite this being bad news for people looking to buy their own homes, it is good news for investors and landlords. Here’s why 2017 is the time to expand your buy to let portfolio.
Well, the confusion surrounding Brexit and changing rules to buy-to-let has caused many people to hold off from investing in property or, in some cases, to put their property on the market. Yet, as we move forward, there is money to be had in the property market.
Bricks and mortar is a great asset to have because house prises are continually rising so when the time comes and you need the money for a different investment, you’ll have made some without doing a huge amount. Presently the interest rates on mortgages are still around record low levels which will help you to get your portfolio built up at a time when stock markets are volatile.
It’s crucial to get guidance if you’re unsure on the market out there. Websites such as This is Money can be helpful but you’ll get more out of sitting down with a professional – you’ll need to seek out someone who has lots of experience, Jason Harris Director of First Urban Group – which is involved in the purchase of land and property – is the sort of person with invaluable insight in this sector.
Of course, you’ll need to do lots of research of the market you’re buying into; this includes all the finer details and charges that may otherwise catch you out at the end of the process.
Next, buy somewhere that is thriving. In order to make money on your buy-to-let you want it full all of the time. You then need to think about your target tenant, do you want a family who may live in the property for a long length of time or students who may change every year? Both can make you a good return in the right area.
Finally, the world of buy-to-let requires someone who can negotiate on prices so you need to be fairly confident and use your research to strike a good deal.
In short: now! There is some low hanging fruit to be snatched up at the beginning of 2017 with people getting houses back on the market at fairly low prices. Look up mortgage rates, get your finances in order and get involved as soon as you can.
Also, there are more people out there than ever at the moment that can’t afford to outright buy their first home due to not being able to afford a deposit. That means that all of these people are looking for rental properties, so choose your area wisely and cater for the demand in the market.