Thinking of Buying Property to Let?
Many people would say that the property bubble has well and truly burst. However in the last six months the rental property market has seen a huge rise as more and more people are looking for rental property. Some of the reasons for this are:
1) People cannot make their mortgage repayments and have been forced to sell their house and resort to renting property until such a time the market improves and the recession passes. This can be due to that people can’t repay their mortgage because they may have lost their job as unemployment is on the rise. Another reason is that with the rise of interest rates their mortgage has raised that much that they just can’t afford to pay the repayments. 2) You’re a first time buyer and the banks won’t give you a mortgage. This has happened because the confidence on banks lending each other money is at an all time low which makes the banks less likely to give you a mortgage as it’s seen as too much of a risk for the banks. 3) You have sold your home and you can’t get a new mortgage to buy a new home. 4) Councils are in desperate need of property to rent. The government promised new homes for rental but with the problems with the construction industry and lending this isn’t happening quickly enough. From this you can see that there are a lot of opportunities available for the buy to let market. This however does depend on if you have enough cash to but property as getting a mortgage is difficult just now.
Grant Management a leading rental property management firm announced lately that they are receiving record occupancy levels for property to Rent in Birmingham and even for houses to rent in Manchester. They have offices throughout the UK and have seen steady growth.
With the right to buy your council house back in the eighties seen many people buying there council house with big discounts. The problem with this is that now councils just don’t have enough rental property. You can now rent property to council with guaranteed rent which a great opportunity for people want to rent out property. The one problem with renting is having occupants in your property to cover the mortgage. This scheme from the council can help you rent out your property. So you can see buying property to rent is still a good idea but I would advice you do your research and make sure you are getting the best deal available.
