Tue 21 Feb 2017 View all news articles

It's still a great time to invest!

Often we are canvassed for our expert knowledge on the lettings market, “what demand is there currently?” “What properties are best for Buy-to-Lets?” And “Is now a good time to invest?” are all common questions posed.

Firstly the topic of ‘demand’ should certainly draw no issue for any landlord out there. The supply of properties and demand from tenants is at present, heavily outbalanced. With around four tenants registered for every property listed, demand is certainly something landlords should not lose sleep over. Furthermore there are a myriad of reasons as to why this bodes well for new and current landlords wanting to invest. Naturally the parity between supply and demand will drive rents up to a premium, ensuring landlords can maximise their returns. The luxury of being able to have a choice (in many cases) of tenants means the right tenant can be selected, focus on the best person, not the first person. And of course not forgetting the impact this will have on void periods (the amount of time a property sits empty). With such strong demands, void periods can be reduced heavily - more good news for landlords!

Now what about the best type of property? For this there is no one specific area, or style of build to pay particular attention too. Some landlords prefer to find a property needing little or no work, something ‘ready to go’. So once the sale has completed they can secure a tenant right away. Other landlords prefer those properties in need of a little TLC shall we say. Ones which are offered at lower prices, carry smaller monthly repayments, and in-turn offer greater yields and present the opportunity to add value, increasing chances of capital growth through modernising the property.

Is now a good time? Well after analysing the current economic condition of the market what do we know? Well firstly, buy-to let mortgage rates are at an all-time high, continuing to strengthen the view point that property is still a more attractive and lucrative venture than other investment opportunities. Then what if we focus on the North West more specifically? Many independent studies report that 2016 represented continued growth of rental prices across our region. Furthermore, reports found that it was one of the strongest across any region in the county and this is tipped to rise through 2017.

Though many landlords I’ve spoken to often and still do go with their gut feeling when they see a property. If they like the location and, importantly, if the figures stack up - they will make their move. Remember, finding tenants is the easy part, ensuring the investment is viable is the tricky bit!

Are you wanting to invest in a buy-to-let property? Search our investment properties for sale here.

As leading Wirral estate agents and lettings agents we have plenty to talk about and like to give our opinions on a few things too! Read about what we have to say, our latest news and industry news.