You might be wondering ‘why buy a rental property in Medway’? After all, we’re in the midst of a global pandemic, and a trip to the shops is stressful enough!
However, all the findings suggest that now is a great time to invest in a rental home and enjoy the financial benefits of being a landlord that come with it.
After a long lockdown pause, the economy is slowing starting to open up. According to Nationwide, the average UK house price is £218,902, a 1.7% drop in the previous month. Therefore, it’s a great time to bag a bargain and invest in a buy-to-let property. With the stamp duty cut in place, now is a great time to purchase your buy to let investment within Medway. The rental market currently is very buoyant as over the last 12 months, the average rent achieved for properties let in Medway Towns was £826 per month. This is a 4% increase on the previous 12 month period.
There are many benefits to owning property. Whether you’re toying with the idea of becoming a landlord or sold on the idea, here’s 10 good reasons to invest in a rental property right now.
1. It’s a tangible investment
It’s never too early (or late) to invest in the future. A rental property is appealing to many since it’s a tangible investment and one that’s relatively familiar and easy to understand. For many, it’s also a far more accessible investment, compared to bonds, stocks or shares that require some market skill and know-how.
2. It can be a money-spinner
Sure, house prices fluctuate, but as far as long-term investments go, it’s one of the best ways to enjoy a sizeable financial return. The latest figures reveal that landlords in England and Wales enjoyed £79,770 in capital gains in 2018. The findings also revealed that the vast majority (85 per cent) of landlords with a buy to let property for sale manage to sell it for more money than they originally paid for it.
3. Market for renting
From students to relocated-workers and families to couples, the rental market is vast and varied. It’s thought that one in five households in the UK is a rented home. With this in mind, it’s likely you will always find demand for your buy-to-let property.
4. Annual salary
Of course, one of the benefits of being a landlord is the annual salary that comes with it. This varies depending on the size, condition and location of your property. However, there’s much appeal, with the average landlord earning £15,000 a year in rent, before tax and deductions. For some, this could make the difference of being able to go part-time in their job or retire early. For others, it is an excellent way to top-up their salary.
5. Guaranteed income
There’s no denying that there are certain stresses that come with owning a rental property. However, many will agree that the benefits of being a landlord far outweigh this. One of these benefits is some guarantee of a regular income. Most rental contracts are for six if not 12 months in duration. This offers landlords some peace of mind in terms of a regular monthly payment. Some might say, even more security than a full-time job offers.
6. Grow your portfolio
Many individuals who start with a buy-to-rent property find that it’s a viable business. This offers a foray into the real estate industry, growing your portfolio as you acquire more properties. This can be a great career choice, especially for those with an interest in the property market and business investments.
7. A second home
Some private landlords invest in a buy-to-let property as a future nest egg for themselves. Not just in terms of financial gain, but also as a retirement home. As part of your long-term strategy, you may decide to invest in a second home now to rent, that you later take off the market to live in yourself. You’ll also have the added benefit of knowing the property has been in good hands, in an area you’re already familiar with before moving.
8. There’s lots of support
Even if you’re new to the buy-to-let market, there’s plenty of support in the industry. This includes the Residential Landlords Association who represent and assist its members. From landlords coronavirus advice to lettings expertise, they’re a great resource. Plus, it’s relatively affordable, starting from £155 a year.
9. Support your family
One of the benefits of owning property is the opportunity to provide a secure rental to your family. If you have children at university, this will be an all-too-familiar scenario.
Many families turn to buy-to-let properties to ensure their children have a stable residence during their higher-education. This can still be rented out beyond their tenancy, making it a handy side-hustle if you like!
10. Expand your knowledge
Whether you already own a property, or you’re looking for a buy-to-let for the first time, you will undoubtedly expand your knowledge along the way, from learning the lingo to understanding lending rates, and regulations around being a responsible landlord. It’s a great chance to grow yourself in ways you might not have previously considered.
For no-obligation advice on buying a rental property in Medway please contact our expert property team at Medway Premier Homes on 01634361245.
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