Gone are the days when people only rented if they had to and the concept of ‘paying someone else’s mortgage’ was laughable. How times change! A whole generation have grown up with the complete opposite view, asking why they would want to be tied into a 25 year mortgage when they could go for a 6 month tenancy, why would they want to have to pay for boiler repairs, for example, when they could have a landlord who would be responsible.
Of course, circumstances often determine a living situation, but the fact is that the trend for people wanting to rent shows no sign of slowing down. On the contrary, the pace is picking up with more and more people wanting the freedom of being a tenant rather than ‘a slave’ to a mortgage.
As house prices are starting to slow, now could be the perfect time to purchase that investment property. After all, it is always down to timing when dealing in the property market. Over the last 4 -5 years house prices have risen but rents have remained fairly static, meaning that the annual return has gone down, but that could all change as Government intervention could mean that fewer available properties to let pushes up the rent, and if the purchase price is more attractive now than before, the annual yield could increase.
As an example, four years ago we were selling a selection of brand new two bedroom apartments for £200,000 and achieving £1,100pcm, leaving landlords with a great return of 6.6%. There were, of course, leasehold costs and agency fees to be taken into account, but even so, this was a very healthy return. Those looking to repeat the exercise today could see the purchase price having increased to £300,000 and the possible monthly rent fall slightly to £1,000pcm, offering a return of 4%. This could be about to change but, as always, professional advice is key to make sure the figures work for you.
We have a network of six sales offices available to advise you on purchase prices and our lettings department can advise you on tenant demand and likely rental values, allowing for a fully comprehensive insight of the options available, along with some bespoke guarantee leaseback opportunities on select new builds.
Ash Vale – 01252 353030 | email@example.com
Farnborough – 01252 375999 | firstname.lastname@example.org
Fleet – 01252 812121 | email@example.com
Hook – 01256 764666 | firstname.lastname@example.org
Hartley Wintney – 01252 844015 | email@example.com
Yateley – 01252 597900 | firstname.lastname@example.org
Lettings – 01252 514000 | email@example.com