Is Buy to Let a good investment?

With the market booming at the moment, it’s no surprise that many are looking to get involved with property investment.

But, just where (and more importantly, how) do you get started?

Well, there’s a number of routes into property investment, but by far, the most popular and highly-regarded is investing in buy-to-let properties.

This involves – if you haven’t guessed already – buying a property in order to let it out to a tenant.

In theory, when it works, you should be able to just sit back and collect a consistent and reliable income stream via rent payments.

Use of this strategy dates back years and years and is, as stated, very well-known, but:

Is Buy-to-Let a good investment? 

Well, now more than ever might just be the perfect time to find out!

If you’re looking for passive income, then look no further.

One of the biggest reasons that buy-to-let is so popular is the fact that it’s great for generating passive income, with both monthly rental returns and capital appreciation (essentially the increase in value of a property over time) providing investors with the ability to benefit from more lucrative returns in the long run.

When you also employ the services of a property management company, which can take on a massive chunk of typical landlord responsibilities, it can be a relatively hassle-free venture.

With there being a massive leap in both house prices and demand over the past year, property value, on the whole, has also seen a considerable increase – and there are no clear signs of it slowing any time soon.

In the UK, for instance, the property market is performing relatively well, with UK house prices expected to rise to 21.5% by 2025.

Rental costs are also on the rise, primarily due to demand for rental properties also increasing. Right now, it takes a landlord just around 8.9 days on average to rent out a property. If you compare to just a few years ago – for example, it took around 31.9 days in 2019 – you cannot deny how impressive this looks.

It’s easy to get started.

Another highlight of this tactic is how simple it is starting out.

Again, working with an external company can make your life incredibly easier.

Consulting with a property investment company can help you with finding the right opportunities, securing solicitors, as well as assisting in overcoming whatever bumps in the road pop up throughout the entirety of the process.

Property investment, in general, may not always seem like the cheapest of ventures. Not every investor has the total sum of cash to pay up-front when the time comes to secure the property.

However, you should not let this deter you.

Payment plans are also available to spread out the costs throughout the process, so do not despair!

For the brave ones out there, you can, of course, choose to go solo, but if you’re looking for a relatively stress-free experience, then it might be something to consider.

Right now is the best possible time to get involved.

No, it wasn’t just a nice little segway into the article – it really is the best possible time to find out whether buy-to-let is actually as good as it seems.

As mentioned, a massive advantage for buy-to-let is capital appreciation and is one of the most exciting aspects of property investment overall.

If you’re patient and rent out a property for a few decades, you can later sell it on for a considerable profit.

With the rental market in general currently booming, starting this plan right now may just be perfect timing for those looking towards retirement.

For instance, in the UK, the property market saw record-breaking rises. Flash forward to now, and there is basically zero evidence of this changing any time soon.

Looking at May this year, the average home was valued at around £254,624. This is an increase of 9.98% in the last 12 months alone. When you consider that the country suffered the most significant economic output drop in almost 300 years just the year before, it’d be hard to deny how impressive this is.

So, is buy-to-let a good investment? 

Well, if you research your area and keep up to date with all of the latest trends, then buy-to-let can be a very profitable and rewarding investment.

Now more than ever, with prices likely to continually grow for the next couple of years at least, this is probably the most affordable it’s going to be and the best possible moment to get started.

If you jump in now, you will (hopefully) almost definitely be thanking yourself in the future.

To make it crystal clear, though: research is your best friend!

If you don’t study the market, listen to the experts, and maybe even consult with a property company, then your investment will go nowhere.

Show More

Related Articles

Back to top button