Landlords - who and why?
Whatever the economic climate, landlords tend to fall broadly into one of three main types, each choosing to let their property based on their individual circumstances so any professional advice should correspond with their individual investment plan.
“Every landlord takes a different view of what they want from an investment property and should approach their choice of property to reflect that, whether that’s a preference for short or long term returns, up & coming or established areas, and the net yield balanced against capital appreciation,” explains Eleanor Mulligan of Henry Adams Lettings in Storrington.
“We believe around three quarters of landlords who have entered the buy-to-let market primarily for investment usually take a longer term view. Careful budgeting is essential, considering void periods, mortgage arrangement fees and a host of other potential costs including longer term maintenance. Within a larger, balanced portfolio the investor can look out for areas and locations which are rising in popularity for better returns on their investment, but the risk is generally higher.”
An alternative reason to become a landlord is when parents choose to buy an investment property to boost their income and to benefit their children in years to come, in which case they may prefer a more established location.
“We have also seen many new landlords entering the market somewhat reluctantly having been unable to sell at a timescale to suit them but even so it can work out extremely well for most in the long run, providing both flexibility and an income while still paying off some of the mortgage,” says Eleanor.
“The most important thing is to get professional, impartial advice for your individual circumstances and objectives, and so that you appreciate the responsibilities and legalities of becoming a landlord.”
For professional advice about any aspect of property
investment, letting, or becoming a landlord or a tenant, contact one of your
local branches of Henry Adams Lettings in Storrington (01903 745511), Horsham
(01403 282500), Haywards Heath or Billingshurst.
