Who is buying what?
We live in interesting times. Another mortgage famine is probably on the way; house price predictions are mixed, to say the least; stocks and pensions have become a rollercoaster ride – whole countries appear to be hovering on the brink of financial oblivion.
Who would choose to enter the buy-to-let investment market under such circumstances?
Well, actually, rather a lot of canny investors seem to be doing just this, according to Finders Keepers managers across Oxfordshire. Some new landlords are simply turning up out of the blue, asking us to let a property that they have just bought. Others are using the Finders Keepers Inspired Investment service to provide balanced advice, sift the market, avoid the pitfalls, and buy the right letting property to exactly suit their portfolio and needs.
Other investors are racing to beat impending changes in the planning laws, which will make multiple occupancy letting (to students etc.) a far more difficult business than it is now. Once again, yields are very attractive, with 5% to 6% achievable.
Outside Oxford in the market towns there is a more traditional pattern, with investors following a proven strategy of buying mainly 2 or small 3 bedroom houses at £150,000 to £200,000 which are then let straight away to waiting applicants, once again, at yields in the 5% to 6% range.
None of this looks likely to change in the coming year or so. Given the continuing uncertainties in the markets, this “dash for bricks” seems set to continue. But, a word of warning…
Good advice throughout the process is essential. It is surprisingly easy to buy the wrong property. It will probably let – but the difference in rent, void periods, and tenant quality will be costly over time.