Owning your own buy-to-let property can be rewarding, but it can also be a time-consuming headache. Bricks and mortar have been seen as one of the best ways to invest financially for many years. The economic uncertainty caused by Brexit has undoubtedly affected the property market, with many buyers and sellers choosing to sit on their hands and wait and see what happens.
However, house prices in some areas actually falling meaning that now is a good time for investors to put their money back into the housing market and if landlords are prepared to keep their money invested for the long term then any short-term fluctuations in the property market will be insignificant. Investors capable of looking at this bigger picture and finding the right areas to invest within will be the most successful.
If you’re thinking of investing in property then you might be wondering what the best type of property is to invest in. There are hundreds of different housing markets in the UK so it’s important that you understand the demands for the area that you are investing in. The property market is dynamic with enormous variation across regions. In London, for example, flats make up more than half of property sales.
The property market has in recent years shifted more favourably towards flats or apartments as younger generations prefer this type of accommodation. These type of tenants want the flexibility that renting has to offer, especially in cities and large towns due to the jobs that these cities create.
During recent years the UK economy has been through some tough times and good quality flats typically cost much less than you would pay for a house. Another big advantage to investing in this type of property is the fact that there is less maintenance involved with the upkeep, for instance, flats typically have no garden and are smaller than houses.
Flats grow in value faster than all other types of properties and there is currently a growing demand, so there are many reasons to consider investing in one. If you are buying a flat to rent then you are more likely to make a higher return on this type of property. When it comes to investing in property, getting a good return on your rental is of huge importance.
Another type of investment that is worth thinking about is to purchase a small commercial building which can be easily converted into flats relatively cheaply. This makes it is quicker and easier to build your portfolio, will increase the equity quickly, save you money on VAT and you will own multiple investment properties within one freehold.
There are of course some disadvantages to buying a flat as an investment. Some mortgage lenders see flats or apartments as being high-risk. There is also usually a high turnover of tenants. So, if you’re thinking of buying a flat or apartment as an investment property, do some research into the pros and cons before committing to anything.
Protecting a rental property from potentially damaging occurrences is also a major priority for landlords, which is why Ashburnham Insurance provides flexible, comprehensive landlord insurance for freehold and leasehold buy-to-let properties. Call us for free on 0800 1696137.