Thousands are doing it across the country to prop up their pension, so should YOU be joining them?
The number of buy-to-let loans being taken out is at its highest level in four years. Around £1 in every £7 lent on mortgages last year went to landlords.
There are a number of reasons for this. Falling house prices in many parts of the country have prompted existing landlords to snap up more properties. Banks and building societies, who are worried about lending to ordinary homebuyers, are happy to lend to landlords, who are viewed as less of a risk.
Added to that, hundreds of existing homeowners are dipping their toe into buy-to-let for the first time. Some are doing it by keeping hold of their existing property when they move into a new home, and renting out the old one. Others, who don’t want to move, simply spot a bargain in their local area.
Meanwhile, with the dire savings rates on offer at banks, the returns on buy-to-let look appealing. The average gross rental yield in Falmouth and the surrounding areas - a figure which shows rental income as a proportion of the value of a property - is between 4 – 5%. By contrast, the average fixed-rate bond invested for 3 years currently pays around 2%. There is also huge demand for rented flats and houses.
Before you get carried away building your property empire, you need to be sure it is right for you. It is a huge commitment, and though you could make a profit on your property, it needs to be treated as a business.
Belvoir Falmouth don’t sell property - we are lettings specialists, but we do give advice on what might make a good buy-to-let property in Falmouth and the surrounding areas. We don’t charge for this service but we would like to manage your property or help you find great tenants!
Call Annabel Leach on 01326 210304 now for a chat!
