22nd November 2021
What Has The Pandemic Taught Us and How Has The Market Changed?
It’s an exciting time when you first venture into property investment, but beware there are a number of things to consider so you avoid the dreaded rookie mistakes. Research, Research and a little more Research! I would always recommend you purchase your first buy to let in a location you know well, subject to suitability. Don’t be afraid to talk to local agents about what types of property they have the best demand for as these are likely to also have the best returns. What type of tenants do you wish to attract and what would their main criteria be? Take the rental value the selling agent gives you with a pinch of salt as it is in their interests to sell you the property. Get at least 2 more valuations. Take the lowest rental value to do your calculations and you will not be disappointed. Try and also pick local independent agents as their local knowledge is normally far superior to the big corporate agents. Location, Location, Location! A well-used phrase I know but never truer than when you buy a rental property. Rental properties must be near all facilities such as transport links, shops, gyms, parks etc. etc. People who rent will always make practical decisions and properties must ‘tick their boxes’. Tips. Do not make emotional decisions! A stunning conversion flat or Victorian cottage may take your breath away, but it may also take your profit away! Older properties will take a lot more looking after and these costs are always going to be yours! If they have been recently refurbished, then great but you must look long term. Do not be put off by ugly...
The Ministry of Housing, Communities and Local Government have now introduced their guidelines to the new Electrical Safety Regulations that come into force on 1st July 2020. I have included a link to the Governments websites, but what follows is an overview of the key takeaways from the new legislation. When do I need to do an Electrical Safety Inspection? Any new tenancy agreement signed after 1st July, 2020 will require an Electrical Safety Inspection. NOTE: A certificate must be provide to the tenant prior to occupation. What if I have an existing tenancy signed prior to July 1st, 2020? You have until 1st April, 2021 to comply with the new legislation. NOTE: if you renew a tenancy agreement anytime between 1st July 2020 and 1st April 2021 (even to the same tenants) an electrical inspection will become due at that point. Do I need to provide the tenants with a copy of the Electrical Safety Certificate? Yes. Within 28 days of the inspection on an existing tenancy and prior to a tenant moving in on a new tenancy. What will the inspection cover? The inspection will investigte if any electrical installations are overloaded. That is, if there are any potential shock risks, or fire hazards, any defective electrical work and if there is a lack of earthing or bonding. How often do they have to be done? Every 5 years. What happens if my property fails? You will have 28 days to rectify any issues and supply your tenants with a certificate. What if my property is brand new, or has just been rewired? If this...
Recent research suggests that 1 bedroom apartments have the best rental yield, 2 bedroom flats are a close second and 3 bedroom flats/houses in third place. There are, of course, regional variations, but in general I would concur with these findings. So, does that make 1 bedrooms the best buy to let option? I have given advice to hundreds of Landlords looking to invest in buy to let properties, and as long as you follow the basic rules, every type of property has its advantages and disadvantages. There is no hard rule, it comes down to usage, location and market conditions. 1-bedroom properties will, in general, give you the best rental yield, but a 2 or 3 bedroom property will grow more in value delivering a better return in terms of capital growth. This evens things out over the medium to long term. If the housing sales market goes through a dip and you need to sell an asset, then 2- or 3-bedroom properties will often sell before a 1 bedroom. There are many variables in play and when it comes to buying the best property to maximise your return will be greatly affected by factors such as area, budget, local demand etc. If you need any advice, and cannot find the answers on my website, then please feel free to call or email me with any questions you may have. My advice is free of charge and comes with no strings attached. ...
What Has The Pandemic Taught Us and How Has The Market Changed?
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