If you are sitting on the fence when it comes to buy to let investing you need to read this post. We know that times are tough at the moment with the Covid-19 pandemic and the UK entering its first recession for a number of years.
But there is some good news as far as buy to let investors are concerned. If you are thinking of becoming a landlord or have put your buy to let investments on hold for a while then you need to be aware that it is a good time to invest in buy to let properties.
Additional Income Stream
With the pandemic showing no signs of easing, it is a good idea to create additional income streams. Investing in a buy to let property and renting to tenants is a good idea right now. To get the best return on your investment you need to find the right property in the right location.
You need to decide on the amount of renovation that you are prepared to do in order to fetch the highest rent prices. People are looking for nice homes to rent and they will pay higher prices if your property really shines.
So ensure that you are diligent in your research so that you locate the best area for private rental demand and the best yields that you can. Who will you be renting to? If it is a family then the property needs to be near to schools. For the student market their home needs to be close to the university or college. It is all common sense really.
UK House Prices are expected to fall
People are being cautious with the coronavirus pandemic and they are concerned about their ability to repay a mortgage on a new home as they feel that their employment may be at risk. This means that there will be a fall in house prices which is an opportunity for you to get a very good deal with a buy to let investment.
In a recession it is a buyer’s market. Sellers do not have the power and will need to reduce the price that they are looking to sell for in order to make the sale. A number of sellers will want a quick sale and this is an excellent opportunity for you to land a good property at a lower price.
Nobody knows how long the pandemic will last so things can change at any time. When the economy recovers again then there is a good chance that these opportunities will disappear as it becomes a seller’s market again.
Demand for Private Rentals is up
The demand for private renting is going up and is likely to stay this way for the foreseeable future. With less people willing to risk buying their own property they are turning to the rental market to find a place to live.
In May 2020 demand for rental properties was up 33% on May 2019. The demand for the private rental market has been strong for a number of years now due to rising prices and a lack of housing in the UK. The pandemic has increased the demand.
There are other reasons for making a buy to let investment now and these include the reduction in stamp duty which at the moment is in force until March 2021. So we recommend that you take action right now and take advantage of the market conditions.
