We thought we'd share their thoughts and let you decide whether you think you fall into one of those groups. Within each group, ARLA describes a sub group of those new to buy-to-let (BTL) as 'learner landlords', which is possibly quite an apt description?
But let's take a look at the three groups:
(1) Investors
The majority of all BTL investors own a rental property as an investment. The main change in this group has been a move towards expecting a shorter term gain. While many investors used to look at property as a long term investment, this year, over half of new landlords were looking to "capitalise on low interest rates and schemes such as the Government's Funding for Lending programme".
(2) Good parents
Bearing in mind some members of this group will also be genuine investors interested in a profit, they have moved in to BTL to provide financial support or a legacy for their children. Over a quarter of landlords now cite this as one of the reasons for their investment.
Looking at Edinburgh student property, there has always been a group of parents who bought a flat when their first child went to uni and rented the other rooms to the child's friends. Once their course finished they became bonafide investor landlords, renting to the student market.
(3) Reluctant landlords
Probably the best-publicised group of the three, the number of reluctant landlords has grown since the recession started with those unable to sell their homes renting them out for the time being. Whilst generally looked at negatively, entering the market reluctantly does not necessarily mean a landlord is 'bad' or unsuccessful.
What is important for any landlords is to work out their figures, ensure the rent generated by the property in question covers its outgoings and to also plan for void periods - most of which can be taken care of by a reliable letting agent.
No comments:
Post a Comment