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Now’s the time to invest in buy-to-let
3:00pm Wednesday 28th March 2012
The rise in demand for rental property makes this a prime time to invest in the buy-to-let market according to estate agents in the Sutton area.
The Association of Residential Letting Agents (ARLA) says more than half of their members in a recent survey reported that demand for property to let is now outstripping supply.
With investors looking for alternatives to banks for their money, ARLA agents feel the buy-to-let market offers an attractive proposition. But they urge would-be investors to do their homework before taking the plunge. “Investing in a buy-to-let property has always been an attractive opportunity, and the high demand for rented property means there are a growing number of first-time landlords in the market,” said Ian Potter, operations manager with ARLA.
“Making sure that your investment pays off takes hard work and commitment, but can be rewarding in the long term.”
ARLA, who’ve released a list of tips for new buy-to-let investors at arla.co.uk – advise landlords to look for a licensed local agent to promote, and potentially manage, their rental property.
Jackie Parsons, lettings manager at Leaders in Sutton agreed, stressing that new landlords need to understand all the implications prior to buying to let.
“With the exceptionally strong demand for rented accommodation, we are certainly seeing more interest from people considering investing in a property to rent out,” said Jackie.
“Buy-to-let is an appealing option — the stock market is alarmingly volatile, and interest rates are very low, giving poor returns on savings. In contrast, rents are strong, yields are good and there are many opportunities for making a good, solid investment in the current slow sales market.”
Jackie advises new landlords to consider buy-to-let as a medium to long-term investment for the best returns. They also need to be aware of the laws and regulations governing residential lettings – a key area where a knowledgeable ARLA letting agent can help.
She said that tenants today are increasingly looking for good quality homes to rent, often for longer tenancies than before, so the property needs to be in good condition.
“Tenants are looking for good quality properties to rent, often for long tenancies of a year or more, so they are very discerning,” she said.
For a full list of tips and advice on buying to let, visit the ARLA website at arla.co.uk.