Investing in Buy to Let

Investing in Buy-to-Let has remained a favourite investment choice for many investors for all types of reasons. A strong and steady market for over a decade, property has provided investors with good returns yet remained relatively low risk. Since the financial crash of 2008, the investment landscape has changed dramatically—with mortgage lending getting tougher and house prices soaring—but property has remained a consistent. Apart from a minor set-back, it is now more buoyant than ever proving itself time and again as a tangible and secure investment.

Property has been consistently outperforming stocks and shares and other mainstream assets for over 10 years. At a time when interest rates are at an all-time low, buy-to-let is widely considered the best investment option on the current market, and other assets are not as stable or lucrative as once they were.

Property is one of the only asset classes that offers the potential of two different (but incredibly lucrative) returns on investment:

Rental returns: Consistent rental returns provided on a monthly basis to the landlord during the time a tenant is residing in the property. With demand for rental accommodation now at an all-time high, rental increases are common practice and returns only get greater.

Capital appreciation: If investors are looking long-term, when disposing of a property asset investors will more often than not be selling at a higher price than they paid. It is important for investors to take the right advice, and buy in emerging areas that are showing the best signs of growth in the future.
This means that landlords will benefit immensely from returns both during and at the end of a property’s lifecycle.

Bricks and mortar (the colloquial name for property) is one of the most trusted investment types, with investors enamoured with the fact that property is tangible and inelastic. Another massive plus for investors is the fact that bricks and mortar is an asset class that is inheritable, meaning that investors can pass on their property to their children after their death, offering financial security for future generations too.

For years the UK housing market has recorded year-on-year growth in terms of house prices, fuelled by a chronic undersupply of available homes. Therefore, experts predict that the upward trajectory on house prices will continue as long as the supply/demand imbalance across the UK exists.

Likewise, the rental market in the UK is currently skyrocketing because of the same supply/demand imbalance. More people than ever have been priced out of the owner-occupier market, which is why demand is through the roof for prime rental accommodation in popular rental destinations.