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New Year – New Buy-To-Let Opportunities

  • 3rd January 2020

New Year – Looking to invest in New Buy-To-Let Opportunities?

Many of us take time in January to assess our finances and budget for the year ahead. Here at Chiltern Relocation, we have witnessed a notable pick up in interest in the buy-to-let space, so here is our guide to making the most of this opportunity this New Year.

The most frequently asked questions we get asked are:
• Is this a good way to invest money?
• What will the returns be like?
• Is there a lot of work involved and is it very time consuming becoming a landlord?
• Should I aim for a corporate let or to private individuals or sharers?
• Do I need to furnish the property?

Is this a good way to invest money?

As with all property decisions LOCATION is everything. Yes, it is a good way to invest your money if you choose the right property in the right location. We relocate staff on job assignments and the biggest demand is purpose built 1 and 2 bedroom apartments in secure modern developments. Popular locations at the moment are:

These are by far the easiest to rent out and demand is high. However, with new apartments being built all the time choosing the right development is key to your buy-to-let success. Chiltern Relocation is regularly asked to find such flat rentals on behalf of International companies relocating staff. These companies have preferred blocks for their staff and specific demands. These will include; maximum commute time of 20-40 minutes, preferably walking distance to the town and station, non-ground floor and within a modern secure development.

What will the returns be like?
This illustration concept shows the level of ROI. Return of investment is the gains compared to the cost.As for your return, if you buy an apartment in one of the preferred developments then the rental demand, is very high. Due to little or no rental voids and good demand you will be assured a decent yield. Link here to a rental yield calculator. However, make sure you factor in any service costs and regular maintenance expenditure. Also do not focus totally on yield, look at the long term investment potential. Many apartments don’t make sense with rental income vs capital investment initially, however, you if looking for a 10 – 20-year investment a different set of criteria apply.

Is there a lot of work involved and is it very time consuming becoming a landlord?
Again if you choose the right apartment then many of the kitchen fixtures and fittings will be built-in such as a washer/dryer and dishwasher and may still be under guarantee. The developments will charge an annual maintenance fee which will cover the communal hallways, the exterior and gardens leaving you free of that responsibility. If you have corporate tenants then the rental income is coming from a secure, reliable source so you do not need to worry about tenants defaulting on their rent.

Should I aim for a corporate let or to private individuals or sharers?Office lady and man standing near packed boxes in office
By far the best tenants are the corporate lets who have strict lease agreements to make sure that everything is covered. With the corporate let market, the principal demand is for one or two-bed apartments. The potential tenants vary from single employees, married couples and sometimes couples with up to two children. Private lets require thorough vetting of the individuals but once completed can be just as successful as a corporate let. By far the most profitable rental is sharers, one home with multiple rooms with an en-suites and shared kitchen. However, you will have to be a hands-on Landlord dealing with disputes between tenants and dealing with individuals using the shared accommodation as a stepping stone to their own individual rental. This adds a cost as each change over is costly to the Landlord.

Do I need to furnish the property?
Furnished apartments are very popular and City Centre 1 and 2 bedroom flats generally come furnished. Family houses in general, come unfurnished. If you choose not to furnish but have a tenant who wants furniture we can put you in touch with companies who provide the various furniture packages and they deliver and assemble it all for you.

For more information and advice about the buy-to-let market our 15 years’ experience of renting hundreds of homes for corporate clients would be invaluable.

To see how Chiltern Relocation can help you secure the right property for your investments purposes then please call on 01494 672086 or email: enquiries@chilternrelocation.com

 

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Sharon Hewitt

Sharon Hewitt

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