Online House Hunter: Buy-to-let’s back
WITH some good bargains to be had in the struggling property market and talk of a Generation Rent looking to be eternal tenants, it’s not too surprising that people are daring to mention buy-to-rent once more.
It only seems a short while ago that everyone was looking to buy property, do it up and then rent it out in order to fund the next property in their growing portfolio.
Then the economic downturn struck and more than one over optimistic property investor had their fingers burnt. But now it seems many are being tempted back.
A survey by LSL Property Services revealed 49% of landlords though it was now a good time to invest with 68% of them expecting the number of potential tenants to increase over the next 12 months.
David Newnes, estate agency managing director for LSL Property Services, owners of Your Move and Reeds Rains, said: “Optimism among landlords is not only buoyant, but increasing. Soaring rents and climbing demand from frustrated first-time buyers are not only making buy-to-let an attractive proposition for new property investors – but are encouraging existing landlords to grow their holdings before property prices increase once more.”
But if you’re thinking of becoming a landlord either by investing in property or letting out the spare room, think carefully first. There can be a number of pitfalls, some of them costly.
Directgov and the Citizens Advice Bureau are good places to start to get your head round either being a landlord or a tenant. Thankfully the law seems much simpler and clear cut these days but commercial organisations such as 192.com offer services such as background checks on tenants.
Numerous organisations offer mortgages specifically aimed at the buy-to-let market although Mr Newnes says this still remains the biggest obstacle.
As to the type of property to buy – well, there’s no shortage of advice on the web but it’s going to be the key decision you have to make. Choose the right area, the right type of property at the right price and you’re home and dry. Sounds simple enough! But thisismoney website has plenty of practical advice including a number of guides to help you.
The Independent property search engine will guide you towards homes for sale in your chosen area.
- Independent online property search engine
- Independent House & Homes section
- DirectGov – Renting out your property
- AdvideGuide – Renting out your home
- Association of Residential Letting Agents
- National Landlords Association
- 192.com identity checks
- Thisismoney guides
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