Patrick Oliver, Herts & Essex - Is Buy to Let Still a Good Investment?

Posted on 14th February 2019

IS BUY TO LET STILL A GOOD INVESTMENT IN BISHOPS STORTFORD?    

by Zoe Kenworthy MNAEA MARLA    

Based in Bishops Stortford, covering the town and surrounding area

The buy to let market has been hard-hit with 3% Stamp Duty Surcharge on second homes, and the gradual reduction of mortgage interest tax relief, which will reach the basic rate for all landlords by 2020. But, despite this and current economic uncertainty, Buy to Let remains a good long-term investment.

One of the greatest advantages of being a Buy to Let investor is that you can earn an income two different ways. One way is through the rent paid by tenants, and the other is through capital growth, as although it is not a guarantee, there is a historical trend for property prices to rise.

According to Zoopla, values are around 22% higher than 10 years ago, and a whopping 240% higher than 20 years ago.

Here are our top 5 investing tips:

  • Research your area – renting continues to be a popular lifestyle trend, speak to your local letting agents to find out what the renters are looking for – Bishops Stortford has a good rental demand due to great road rail and air links, and schools.
  • Do you want to be a hands on landlord or use an agent? If an agent, use a formerly regulated letting agent (ARLA, NALS) to manage your rental in order to give you peace of mind as there are numerous tenancy regulations to comply with, and hefty fines if you don’t.  Select a shortlist of agents big and small and ask them what they can offer you.
  • Ensure you find good tenants, as they then provide a steady and predictable source of income. A good agent will interview their tenants and treat the place like it is their own ie. not just select the first ones that come along
  • Do the maths - we recommend speaking to an independent mortgage broker – our in-house one: Edd Ranford, Mortgage & Money Management Limited 01920 821333 is always happy to provide ‘no obligation’ advice
  • Keep up with maintenance, by making sure your property is a nice place to live – It really pays to look after your tenants. Do this and they will look after you.

    Patrick Oliver, Herts & Essex are ARLA regulated agents based in Bishops Stortford, and as locals we know the area very well. We offer a premium service without the premium prices. We tailor our Lettings and Property Management Services to suit you. We work cleverly so that we save you money, time, and avoid any unnecessary stresses involved with renting and property management.

    Contact Zoe Kenworthy MARLA on 01279 530100 for more details.

    (*Special Patrick Oliver, Herts & Essex Spring 2019 promotion – please ask more details)

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