A lot of people have avoided investing in the buy to let market because of the government changes over the last couple of years. But if you are smart and do the tight things then there are still opportunities out there to build a profitable buy to let portfolio.
All of the uncertainty over Brexit has not helped either but this could have an impact on property investment overall and not just buy to let. If you follow the methods below you will have a much greater chance of succeeding with buy to let investments in 2019.
Keep ahead of the Landlord regulations
The private rental sector has had its fair share of government changes over the last few years and more changes are on the way. You need to know about these changes in advance and plan around them.
The most recent legal change was the Tenant Fees Act which came into force in June 2019. This law prevents landlords from charging tenants for anything else other than a specific list of items. You can get the full details here.
This is quite a substantial change as it caps tenant deposits and prevents agents from charging letting fees. If a letting agent is missing out then they will try and recap their losses by charging landlords higher management fees. Landlords will pass on their losses to tenants in the form of higher rents.
Other government changes include improvements to the standard of homes for rent. These changes came into force in March 2019. So you need to prepare for changes like this and see them as a positive move towards improving rental accommodation. You will end up with a property fit for rent while others will lose out.
Think about changing to a Limited Company
For some buy to let investors, changing to a limited company status can have tax advantages. Before you make the change ask a tax expert for advice as changing to a limited company will not benefit everyone.
There will certainly be some upfront costs to form a limited company for your buy to let portfolio. But you need to think long term here. If you can benefit from tax savings then it can certainly be worth it in the longer term.
Invest in the right Properties
It goes without saying that getting the right property at the right price in the right area should always be your aim. These days you may need to look further afield to build your buy to let portfolio. London and the South East are not having the best of times at the moment whereas things in the Midlands and the North of England are looking good.
Keep up with the trends and buy to let hotspots. Buying in the right area is always crucial and if you have to travel a bit to find the best opportunities then do that. At the time of writing Manchester and Liverpool are looking very good from a buy to let perspective.
Get the best Mortgage deal that you can
Did you know that there are more than 2,300 buy to let mortgage packages available right now? This is the highest number of mortgage products available for buy to let investment since 2007.
Get yourself a good mortgage broker who specialises in buy to let loans. They can find deals for you that could save you thousands and now there are lots of buy to let mortgages available for limited companies too if you have made this change.