April 23, 2008
Buy To Let Landlords Remain Confident
Research from ARLA concluded that 4 out of 10 landlords are planning to add to their property portfolios during 2008. Another finding was that the "average" landlord intends to hold onto the property for at least 16.7 years ( I told you it was a mid-long term strategy!!)
The annual rate of return on buy-To-Let (BTL) property investments was 10.81% (based on a cash investment) but this figure rose to 21.43% on a geared property investment (i.e .one with a mortgage on).
The FT recently reports that landlords are also benefitting from the increased demand for tenants as buyers are delaying moving and are renting instead.
Mortgage Trust customers found that 3 out of 10 landlords found a new tenant in less than a week, while a further 40% found a tenant with one to two weeks. Interesting reading - that meand the average void for people who conducted the survey was 1 week!!
The propertion of landlords who said it took more than 2 weeks was 28%, down from 42% from the previous survey.
What conclusions can we deduce?
1. Rents are rising
2. Rental demand is increasing
3. Property investment offers excllent ROI especially when geared
4. Property is a long-term investment - any market fluctuations will be minimised over the long term
Property Investment isn't dead - long live property investment!!
