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.