Is it cheaper to buy-to-let than owner occupy?
For many young professionals wanting to get onto the property ladder, it can be cheaper to buy-tolet than to become an owner occupier. You can buy anywhere as a landlord, provided you buy wisely and research the rental market in your chosen location. It also gives you flexibility, because if you change jobs and move to another location, you don’t have to sell.
“With demand for rented accommodation at current levels, there are good opportunities for landlords,” says Leon Betchley, Regional Director of ARLAregistered Countrywide Residential Lettings, the UK’s top specialist agent. “Wise potential landlords are putting their money into two bedroom houses, or sometimes three bedrooms, because they are ideal for young professional couples and sharers, whilst families like the extra bedroom.
Ex-local authority properties in good locations on transport routes and close to schools and shops are both well built and usually larger with bigger gardens and can represent good value for money.”
Mr. Betchley warns that budding, as well as experienced, landlords should always work out a detailed budget before buying, to include void periods as well as all the repairs and maintenance costs, any service charges, and professional fees, including property management and rent collection. “Few landlords want to manage their own properties because it is time consuming and there are so many compliance issues and tax regulations.
And if you’re buying a property a long way from where you live, it will be virtually impossible to respond to those late night complaints about the faulty heating, a tenant being locked out, or the washing machine flooding.”
Find a trusted ARLA agent to advise and, “if the rental income means you at least break even, based on evidence of local demand and acheivable rents, then you could be onto a winner!”
For further information log onto www.crldirect.co.uk to find your local letting branch.
