9 reasons why 2024 is the year to invest in buy-to-let
Buy-to-let is back with a bang! Landlords are selling up, there’s a sharp growth period forecast soon and we’re seeing plenty of good deals on the market that won’t cost a fortune to get into. Great news for investors of all levels of experience.
So, if you’ve been thinking about investing in property but haven’t done anything about it yet, here are our nine reasons why this is the year to get involved.
Landlords are selling up
Increased tax and new restrictions to the legal framework are forcing existing landlords to sell up. Tired landlords don’t want to spend money to bring their properties up to standard and landlords who bought properties in the golden years of the 80s have made their money and now want to retire.
Because of this we are seeing more stock on the market, which creates fresh opportunities for new investors and investors who want to be in it for the long game.
Less first-time buyers
Higher mortgage interest rates are making it harder for first-time buyers to enter the market, which creates an opportunity for investors. Less competition means lower prices, meaning there are more chances to bag a bargain.
More sellers than buyers
Things are changing now. There are fewer buyers, so sellers are being forced to drop their prices to attract a buyer.
Sharp growth period forecast for 2025
Property prices consistently double every 10 to 12 years, at which time you can release some of the equity to fund whatever you need the money for at that time.
Often this is used for retirement but it could also be used to help pay your children through university or to go travelling etc. Or to fund your next deal, maybe? The options are endless and completely up to you.
Attempting to ride on the waves of the market and take advantage of the growth periods when they happen is a good tactic and a sure fire way to increase your equity faster, meaning you could see that lump sum available sooner.
You can do it alongside your job
Take it from me, as someone who has done a lot of different property strategies, some which have you permanently stressed, scratching your head (is there any wonder I’ve got no hair!) and wondering why on earth you’re doing this.
Buy-to-let is so simple. You buy a house, rent it out to one person and then get on with your life a little bit better off. Easy peasy.
Low liability compared to other strategies
Unlike a HMO or serviced accommodation strategy where you are liable for bills and everything associated with the property, with buy-to-let the only liability you have on the asset is paying the mortgage every month and insuring the bricks and mortar, the tenant does everything else (arranging and paying for bills, insuring contents etc).
Another benefit is that if the time comes and you decide you want to sell the asset, the process is simple. You can sell the property either tenanted or vacant.
More money in your pocket now
So, once your tenant moves in you will start to see an increase in your monthly income by approximately £200 to £400 depending on the type of property, location etc.
What will you spend your extra pennies on?
There are bargains out there
The last time the market saw deals like we’re seeing was back in 2008.
We’re currently looking at a bucketload of two and three bedroomed freehold properties that would be perfect to rent out to young couples, families and blue-collar workers. Some need a full refurbishment, some just a lick of paint and some carpets and some don’t need anything at all. So there really is something out there for everyone.
You might regret waiting
The takeaway
It’s very straightforward compared to other property strategies and at the moment there are plenty of deals about just waiting for the right buyer to snap them up and begin to change their life.
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Or if you’re ready to get started and have some specific questions you need help with right away, just get in touch.