Would you consider renting to a family? According to the latest research carried out by the National Landlords Association (NLA), the number of families choosing to rent has been on the increase, making them now the most common household type in the private rented sector.
This information is reinforced by the newest English Housing Survey, which revealed that the proportion of private rented households with dependent children increased from 30% in 2004-5 to 37% in 2014-5. It would certainly be worth bearing this in mind when looking at properties to invest in.
Though there has been a deal of uncertainty surrounding the impact of Brexit, many landlords are still looking to invest in property, and with more people choosing to rent instead of buy, now might be the time to consider expanding your portfolio and taking advantage of the growing rental market.
Deciding What to Buy
The reason you want to invest in property and how much you are looking to spend will have an impact on what and where you buy. If you are looking to obtain a Buy to Let mortgage to fund the purchase, the lender will want to ensure that the rental income will cover a certain percentage over what the mortgage payments are.
For example: a landlord with a long term plan and a budget of £125,000. Here we would be looking for a property that would attract long term professional tenants, close to good transport links (such as M4) or places of work (Hospitals, Universities). They will probably be willing to compromise on the yield a bit more in favour of long term capital growth the property can provide.
On the other hand: a landlord wanting to achieve a yield of 7% or more with a budget of £80,000. Here we would be looking for cheap and cheerful 2 bed terraced property around the city centre, such as Landor or Plasmarl, that would rent for about £475pcm to attract the younger market.
Whether you are starting out as a landlord or looking to expand your portfolio, McCartan Lettings can offer free, expert advice. Call the team on 01792 430100, and they will be able to book an appointment for you, either in the office or over the phone, to discuss.