Expand your Buy to Let investment portfolio with a New Build
Struggling to find good investment opportunities because of stagnant interest rates and European instability? Buy to Let properties are proving irresistible for investors. Last year saw a 32% increase in Buy to Let mortgage lending, with over £27 billion lent according to the Council of Mortgage Lenders.
You have several options within the market. You may not have considered a new build (or even buying off-plan) but there are many advantages. We can help you choose the perfect development if you are wondering where to start.
Few properties let as easily as one bedroom flats and apartments so they are a good place to start. Then you must decide between a conversion or purpose built homes.
Why conversions can be both good and bad for landlords
Conversions can be lovely. They often have lots of period charm, high ceilings and original features. But they were never designed to be flats and unless very carefully developed still feel like part of a large house. Then you must be prepared for issues with stairs, noise and facilities in general.
Why New Build properties have the advantage
New purpose built flats offer what your tenants want, sometimes with a lovely view and lift. Your yield on investment for a new build property is less risky based on running costs. New fire regulations from October 2015 will require smoke and carbon monoxide alarms in all rental properties. Anything built these days must have mains wired alarms built in – one less thing to worry about.
Depending on the market, buying off plan can also get you a better deal. Developers might sell at a slight discount, especially if you are in a good position. You generally pay 10% at this stage and the rest on completion, which could be some time away. At that time, you may well discover that the value of your flat has already increased. Our recent launch at Horsham Gates showed there is lots of demand for this kind of investment. Over half of the one and two bedroom apartments were reserved on the day with many selling to buy to let landlords.
We are always on hand to offer advice if you want to buy a new build to let within your portfolio. Our Buy to Let mortgage specialists can tell you about the amazing Buy to Let mortgage deals available. We are only ever a phone call away to help you increase your investment yields and source your next investment.