14, November 2016: The popularity of buying-to-let has soared over recent years, with scores of UK-based and non resident landlords taking advantage of the current property climate. Those in positions to raise sizeable deposits still stand to make significant gains from investing in property in the UK due to the low supply and high demand that characterises the market. If you are thinking about investing in property in the UK for the first time, it’s vital that you seek out advice from leading experts in order to avoid reaching a decision you might come to regret later.

Generous mortgage rates

Low mortgage rates have made investing in property in the UK an even more attractive proposition. However, it is vital that you do not forget that mortgage rates can rise at any time. There are also other factors to be aware of, such as tax rises and the extra 3% stamp duty landlords now need to pay on property purchases. Nonetheless, buy-to-let can still be incredibly lucrative if the market is approached wisely.

Keeping the market alive

After the 3% surcharge came in, many lenders reduced mortgage rates in order to keep the market buoyant. There are many factors that can influence the kind of buy-to-let mortgage you might be offered. These include your current circumstances, deposit size and the difference between rent charged and mortgage payments. If you are completely new to the market, you should spend a great deal of time considering which properties will be right for you and what kind of tenants you wish to attract.

Adding value to properties

The student rental market can be very lucrative, which means investing in properties close to universities can be a very shrewd move. The demand for city centre living is high, and you can normally expect to enjoy significant yields by investing in property in the heart of places like London, Manchester, Leeds, Birmingham and Liverpool. A further attraction for landlords is the fact that they can add significant value to their properties by renovating them, with the amount being invested in making changes often being eclipsed by jump in value.

Where to target

Opting for a promising area can be a very wise move. Homes in locations that are deemed up-and coming may rise in value significantly over just a few years. You should think about factors including proximity to good schools if you are targeting families, or look for homes with convenient transport links if you are thinking about moving commuters into your property. There are many property management companies that can assist you with the day-to-day running of your investment if you do not plan to be a ‘hands-on’ landlord. Most landlords adopting a ‘hands-on’ approach tend to live within ten miles of the property they are renting out. If you reside further away than this, you may well wish to find a reputable property management specialist to assist you.

Covering the cost

Many buy-to-let lenders now expect the rent to cover 125% of mortgage repayments. You should be prepared to pay sizeable arrangement fees if you are taking advantage of the best buy-to-let mortgages. Never forget to consider maintenance costs as these can demand a significant chunk of your income.

Research the market

It is also important to spend time looking for the best mortgage deals and real estate investment opportunities rather than simply opting for the first offer you find. The more time you spend seeking out the best mortgage products, the better the end result is likely to be. You may well wish to seek out advice from an independent and impartial mortgage broker who will not be influenced by anything other than getting you the best deal and providing the best service that they can.

Prepare for short-term slumps

It is also wise to prepare yourself for short-term value drops. Many buyers, who have seen values drop quickly after signing the dotted line, quickly see prices rise again after weathering the storm. Unless you are targeting students, you will probably want your tenants to remain with you for a significant period of time, as finding suitable new tenants can be costly and time-consuming. This is why it is advisable to encourage tenants to personalise the property by decorating, adding their own furniture and making other subtle changes to it if they wish. Many landlords still face problems with tenants failing to pay rent — rent guarantee insurance can be an excellent investment and is available for a modest fee. Purchasing this is a wise move for anyone engaging in real estate investment in the UK.

Yields explained

If you are not quite sure what the term ‘yield’ means in terms of property investment, read on. A yield in this context refers to the amount of rent received over the course of a year compared to the price paid for the property. For instance, a property that costs £100,000 and brings in £5,000 of rent each year would have a 5% rental yield, a very pleasing figure for most landlords. Things can get a little more complicated if you are buying with a mortgage rather than buying outright — there are various mortgage calculator tools online that can give you a better idea on the income capabilities. It can be worth negotiating to get prices down — you have a better chance of reducing the rate if you have researched the market in depth and if the property and other local properties are taking time to sell.

Finding opportunities

ERE Property is one company offering valuable real estate investment opportunities to investors in the UK and further field. They have offices in Leeds and Hong Kong and match landlords up with properties in UK cities like Manchester, Leeds, Liverpool, Nottingham and Birmingham as well as abroad. They are often able to provide real estate investment professionals with properties at less than their market value because of the long-term relationships they enjoy with a number of market leading investors. They have a particularly strong record when it comes to catering for investors seeking quick returns. The ERE Property team can be found online at www.ereproperty.com and specialise in providing services for developers, house builders, asset managers, landowners, landlords, foreign investors and more.

Contacting the team

As no two investors’ needs are ever quite the same, the team provide bespoke services tailored directly towards the requirements of their clients. The company was founded in 2004. You can follow ERE Property on a range of social media platforms including Facebook and Twitter, and you can contact them by phone on 0113 380 8930. To contact them via e-mail, send a message to [email protected] or get in touch with them via the website. There is also a live chat feature on the site.

For Media Contact:
Company: ERE Property
Address: 21 Queen St,
City, State, Country:Leeds, LS1 2TW, UK
Phone: 0113 380 8930
Email : [email protected]
Website: http://www.ereproperty.com/uk-property