news from Slinn Residential

Its all go.........

Posted on Thursday, 4 June, 2015

To buy or not to buy, that is the question......As most house prices locally have largely recovered to levels last seen in 2007 is it still a feasible option to buy to let?

 

Many of the buy to let landlords buying during those peak years of 2006/2007 were making little or no income from their purchases relying on capital growth only and we all know what happened in 2008/2009 with values dropping faster than Usain Bolt without a parachute.

 

Of course those brave (and probably cash rich) investors who hoovered up property quicker than a cordless Dyson in those bleak and uncertain times are probably now sitting on a beach somewhere, cocktail in one hand and counting the cash on the other.

With most property professionals breathing a collective sigh of relief following the election, rental and capital growth increasing and changes to pension rules there has been a surge of interest from first time landlords.

 

We are currently purchasing properties for a couple of clients in quality locations in good condition and will expect to receive a gross yield in the region of 6% or so. With the potential prospect of further capital growth, existing low interest rates and more lenders entering the market we expect more potential landlords to surface in the coming months.

 

With the onset of summer it is a good time to check the exterior condition of your property. Having touched on rainwater goods last blog, keep looking upwards and check for slipped or loose roof tiles and slates. After the recent high winds they can fall with no warning causing potential harm to both property and person!

 

Lastly, with the favourite not sure to stay 1.4 furlongs and several horses showing better form on softer ground than predicted for Saturday it could be an open Derby. I might have a fun pound each way bet on the outsider Kilimanjaro (although he could face a mountain to climb!!). Whatever your fancy, don't get carried away, betting on horses is not "as safe as houses"!

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