Buy to Let Furniture & Furniture Packs

Amidst an ever turbulent economy with markets changing daily and great feelings of anxiousness and anxiety concerning financial and job security, it might be easy to assume that landlords in the buy to let sector should feel concerned by the tightening mortgage market, however recent reports show this is NOT the case and portfolio landlords remain clam and stable in these troubled times.

A recent report from the NLA shows that only about 30% of landlords use buy to let mortgages and ARLA support this and go on to confirm an average LTV for portfolio landlords of 57%. These mature investors can take the rough with the smooth and are well placed to survive and even profit in the current buy to let market. With many investors looking to purchase within the next 12mths the key factors are:

· Location, location, location

· Low LTV

· Condition of Property

The right property in the right condition will be seeing increased demand and the condition of the property seems to play a key part with tenants’ expectations of properties equal to those in owned properties. This extends to furnishings and interiors, with current regulations it is no longer possible for houses to be filled with second hand goods and quality buy to let furniture from companies such as Lodge Furniture Ltd who specialize in buy to let furniture packs is increasingly important.

Mr Roy Heaton from Lodge Furniture expressed his opinion that tenants were getting more demanding and instructing landlords on their furniture requirements.

Mr Heaton states “The Buy To Let market was formerly moving towards unfurnished properties in may areas but this seems to have come full circle with tenants reluctant to part with their cash and landlords furnishing to suit individual tenants. “

Lodge Furniture aims to be adaptable to all needs and furnishing requirements providing from their site http://www.lodgefurniture.co.uk, single items up to complete landlord furniture package solutions for 4 bed houses. Landlords in return are able to recoup the expense of furnishing through increased demand and rental.

There is no doubt that the current housing maket is in a state of flux with many investors feeling nervous. It might be easy to assume that many will cut and run but recent figures published by Paragon suggest that landlords are becoming more inclined to retain their properties.

Several underlying factors may be responsible for the decision to retain properties; not only do they provide a steady income source for future security, there is also increased demand for rental properties and with rents increasing steadily owned rental properties are a steady long term investment. With this, the need to ensure each property is completed to a high standard presents itself and so landlords need to discover how to do this at affordable prices.

Companies like Lodge Furniture offer fantastic furniture packages for the buy to let market with a high quality finish, and the need to please. As well as this the furniture packages are very affordable and buying furniture as a pack saves both time and money compared to buying separately, a real dream for budget conscious landlords.

Although long term capital investment is currently unstable, historical recoveries shows that in five years time, house values will have increased by over 25%, a huge increase over a not so huge period of time. Savvy investors are sitting tight, weathering the current storm whilst maximising their returns through quality rentals.

Returns remain attractive and strong tenant demand encourages landlords to retain property but with this comes huge responsibilities for landlords. To ensure an easier ride through the credit crunch, landlords need to consider a top quality finish to their properties, including quality landlord furniture, modern appliances and good presentation.

Companies such as Lodge Furniture offer all of this, and on top of that, host a forum where landlords can spread knowledge, providing each other with hints and tips. And just in case you doubt Lodges’ understanding of the current market, on site you will find they are launching 'Lodge Properties' this gives the investor the chance to jump in on ready made deals, and buy below market value.

check out the Lodge Furniture blog at http://lodgefurniture.blog.com

With the current credit crunch, fluctuating interest rates and falling property price predictions many would expect this to herald the end of the buy to let boom. However many seasoned investors and experienced landlords who have held back from purchasing in the last 12 months are once again looking to invest as the original buy to let theory of a return from rental income and not capital growth comes to the forefront. Lodge Furniture Ltd have reported many investors aiming to achieve this through top quality furnished properties achieving maximum rentals.

Despite the doom and gloom surrounding our housing market today leading authority Paragon (The biggest buy to let mortgage company in the UK) have continually reported favourable statistics in this sector. Whilst it may not be as exciting a read as predictions of market crashes and amateur investors paying inflated premiums, the bare facts are that rental incomes have increased by an average of 14% based on April 07 and rental yields remain stable at 6.3%. A good match against most cash investments.

Experience buy to let investors and landlords can often be heard to comment on how a property ‘stacks up’ i.e.: How does the rent cover the costs of owning the property typically the mortgage repayments. Last year when house prices were at their premium and rents had only shown slight increases for several years, finding properties that stacked up was becoming increasingly difficult and may experienced landlords held back. Now with rental incomes showing good increases and predictions or further increases due to high demand form a population scared to commit during turbulent conditions the experienced landlord is not only maximising their returns but also looking to buy with the shift of power away from the seller towards buyer there are now new bargains to be had.

The top 8 tips from Lodge Furniture;

One of the UK’s leading furniture companies specializing in the provision of furniture packages for buy to let investors are:

1) Now is the time to exercise you negotiating skills with many sellers prepared to accept low but serious offers

2) Choose your location carefully and do your homework if you do not know the local area.

3) Do not borrow more than 85% of the property’s value.

4) Think long term, today’s Buy to let market is all about optimising rental incomes and long term capital gains.

5) Maximise your rental income. Although rental incomes are increasing naturally there is still much we can do to help achieve optimum levels. Many of our customers achieve higher rental incomes through top quality furniture packages. Consider short-term lets for up to 6 months. Many people will pay more for a shorter lease and prefer this option to hotel accommodation

6) Ensure your property is well presented inside and out

7) Finally when furnishing your property ensure you buy furniture products or furniture packs suitable for your desired purpose.

FINALLY if in doubt seek expert advice from one of the many professional organisations or individuals who have worked in the buy to let sector for decades.