Tag Archives: Property Investment

BTL landlords ‘don’t assess true costs’

The boom in the buy to let sector is seeing growing numbers of landlords not assessing properly the true cost of their outgoings, says one BTL specialist firm. According to Platinum Property Partners, this means the landlords have no idea about whether a property investment will be profitable or not. In addition, around half of buy to let landlords fail to calculate the cost of any potential repairs to the property as well. From a study by the firm, they have calculated that the gross average cost for a buy to let property the UK is £8,359 every year. This figure is calculated by considering letting agent fees, property repairs as well as mortgage interest. Landlords may be overestimating their potential returns   Platinum is claiming that landlords may be overestimating their potential returns on a property investment by 50%. They say that the best way of gauging an investment’s performance is to use either a return on equity or a return on investment calculation. By doing so, a landlord will factor in the potential gross profit, the capital gains and all associated costs that come with maintaining a buy to let property. The study has also revealed that many […]

The most profitable areas for landlords are in…

The top 10 areas that provide landlords with the most profit in England have been revealed in a new survey. Towns in Hertfordshire and Essex dominate the list to give the best returns on property outside London. The survey has been published by property website Rightmove who say that the best area for an investor is Halstead in Essex. The website says that the average price for a property grew from £150,000 last summer to nearly £182,000 in just 12 months. Landlords also collected an average rent of around £7,830 – which means those landlords who bought a property in the town last year have enjoyed investment returns of 26.3%. Provides landlords with a rental income   Second on the list is Borehamwood in Hertfordshire which provides landlords with an average rental income of £13,691 and a growth in the property’s asking price of £56,300. Rightmove have put the figures together on all properties that have been listed for rent and sale in England and Wales but they have not made any deductions for tax and other costs. The only town in the top 10 from the North is Cottingham in East Yorkshire. The survey also reveals that the average […]

Landlords plan for buy to let portfolio investment

Nearly one in five buy to let landlords in the UK are looking to add to their portfolio which will help fuel a boom in the property market, according to the Nottingham Building Society. The building society has published a report which also says that 4% of homeowners are planning to invest in buy to let over the next 12 months for the first time. Around one in three of these new property investors will be aged over 55. Nottingham’s research also reveals that 70% of mortgage brokers believe that the government’s introduction of new pension freedom rules will help fuel the demand for buy to let mortgages. In addition, around a quarter of mortgage brokers said that demand for these mortgages will rocket over the coming year and 41% said there would be a slight increase in demand. Demand for buy to let mortgage products   From the research, just 2% of brokers believed that the demand for buy to let mortgage products will fall. The mortgage services manager for Nottingham Building Society, Ian Gibbons, said: “Our love affair for property is strong and is reflected with growing demand for buy to let property. “Our research would suggest that […]