03, April 2015: For potential investors looking to make a return on their capital there are many ways that this can be achieved. When investing large sums of money it’s crucial to make sure that any investment is carefully thought out and researched, returns a profit and protects the capital. From stocks and shares to investing in gold and luxury goods, wines, luxury cars and the more traditional savings accounts, there is money to be made long term. One area that is becoming more and more popular with many investors is the UK buy to let property market. Not only is buy to let an ideal way to protect your investment but it can also generate an attractive income. Recent rises in house prices have seen an average price rise of 7 percent over the past 12 months. In relation to other forms of investment, property still remains streets ahead.
Whilst not at the dizzy heights of its peak in 2006/2007, the buy to let market has seen resurgence of late as more and more people look to make a return on their investment. Although recently there was a shortage of high loan to value mortgages, there are actually some lenders offering 85% LTV on buy to let again making it a more affordable option for more people. In February of this year the Telegraph ran an article with the following headline, “Buy-to-let ‘even more attractive’ as mortgage rates hit record lows” stating that lenders are reducing buy to let rates and relaxing lending terms. In fact the number of buy to let mortgages available is reported to be at 800 now — up 100 in 3 months.
Going into 2015 there was some concern as to how a general election would affect the buy to let mortgage with a rise in interest rates being a concern amongst landlords. However, this doesn’t seem to have had an impact on industry forecasts. Market research suggests that the sector will continue to grow this year. According to propertywire.com, 23% of landlords intend to expand their portfolio by 1 property and 14% by two rental properties in the next 12 months.
A key growth area for the buy to let market in 2015 is predicted to be from the new pension reforms. When the pension freedom rules come into effect on April 6th 2015, the release of lump sums of cash from these pensions could see a rush of potential investors to the buy to let market. We could see a growing number of landlords in their mid-fifties joining the current army of landlords. In fact a spokesperson for the National Association of Estate Agents is predicting a buy to let boom as those with large pension pots cash in their lump sum and invest it in buy to let property. The buy to let market offers the attraction of long term capital growth along with a regular income.
PropertyResearchCompany.com who are based in the City of London have extensive knowledge of the UK buy to let market. The directors have bought and sourced property for 15+ years and have unrivalled relationships with vendors and developers who give them exclusive access to some of their properties. They only take on the properties that they feel will benefit a client’s property portfolio aspirations.
For landlords who may be just entering the buy to let arena or for those who have a bigger portfolio of properties, having the time, knowledge and contacts can be tough. The following are all points that need to be considered when thinking of building a successful buy to let portfolio:
- Sourcing the right property, at the right price, in the right area that will generate a decent income and increase in value
- Finding the right mortgage and making sure that you get the right deal
- Ensuring the conveyancing is done effectively and efficiently by experienced solicitors
- Furnishing the property, decorating or even renovating so that it is in the right condition and suitable for prospective tenants
- Finding the right tenant and then ensuring that the tenant pays the rent and stays for as long as possible
- Planning the re-mortgage to release equity
- Look for the next property to build the portfolio
The first step in buying to let is researching the market. PropertyResearchCompany.com does exactly what the name suggests — Property Research! You simply tell them what you are looking for and they do the hard part saving the prospective landlord valuable time, effort and hours of research. In fact they offer all of the following to their customers making the process hassle free and a much more cost effective way to invest.
Choose a high yielding area
At PropertyResearchCompany.com they carry out extensive research on all areas in England and only secure properties in areas that they feel will benefit from huge capital growth due to regeneration plans and future demand. As property investors look beyond London for improved yields, regions like Southampton and Manchester are offering some of the best returns on rentals with 1 in 4 properties now being privately rented. Clients are provided with guarantees so that they can be confident about the returns on their investment.
Within the last two months a client of PropertyResearchCompany.com, an Ophthalmic Surgeon at Moorfields Eye Hospital, bought a house from them for £78,000. It was worth £10,000 more than this at the time. It is now worth £104,000. Between the reservation of the sale and now, a timescale of 5 weeks, it has risen in price by a staggering 33%. It will rent for £525 per month, so a high 8% yield and a fantastic ROI for the client.
Choosing a mortgage
Shop around and get the best mortgage — PropertyResearchCompany.com are lucky to have a trusted panel of mortgage brokers that can help their clients to find the right mortgage. The prospective investor will need to ensure that they have a sufficient deposit — most buy to let mortgages require a 25% deposit; in some cases more. Their brokers can do the research for you and can not only talk you through what is available but also help you weigh up which is the right mortgage and whether to have a fixed or tracker mortgage.
Finding a tenant
You need to consider who your target tenant is — remember you are not going to live there yourself so you need to put yourself in the shoes of the potential tenant and remove your own preferences and tastes. This will help you decide how to present your property — how to decorate it and whether you should furnish it. For families it will need to be clean and comfortable whereas as young professionals may prefer modern and contemporary. Allowing tenants to make their own mark on the property by decorating and furnishing will probably mean they will stay longer. Finding tenants can be time consuming so at PropertyResearchCompany.com their partnerships with letting agents means that they will find a tenant for you.
Growing a portfolio
Once a landlord has 1 or 2 properties to let, it may be that they want to expand their portfolio. PropertyResearchCompany.com can help landlords build their property portfolio by helping them re-mortgage and release equity, and then sourcing another property to invest in.
In addition to this they can connect clients with a panel of solicitors to progress the conveyance and arrange furnishings for the property.
PropertyResearchCompany.com sources buy to let properties in major cities across the UK that will produce high income and excellent growth potential. The company directors are also property investors with many years of experience in building multi-million pound property portfolios. Their aim is to improve the value of these services within the property industry by only suggesting properties that they themselves would buy. They have a real interest in what to buy, where and at what price and are proud to be able to pass on their experience to clients.
Founded in 2014, Property Research Company sources high-income producing, buy-to-let properties in major UK cities with excellent growth potential.
Based a few feet from St Paul’s Cathedral, the London based company offer some of the best property investment deals in the UK. The directors have 15+ years of experience in assembling bulk deals that has provided both small and large investors with access to heavily discounted investment opportunities.
PropertyResearchCompany.com work with first time property investors to advising large property funds.
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