Why Buy a Rental Property in Leicester?
You might be wondering, why buy a rental property in Leicester? After all, we’re in the midst of a global pandemic, and a trip to the shops is stressful enough.
However, most of the findings suggest that now is a great time to invest in rental properties and enjoy the financial benefits associated with being a landlord.
The UK’s housing market has slowed, dropping 1.7% in the previous month, according to Nationwide. This indicates that now is a great time for those looking to buy property and jump on the property ladder. For investment tips check out one of our earlier posts Buy to Let Property Investment: Our Top Tips for Success
One of the benefits of owning a property is that you can rent it out. Benefits for landlords are abundant, so here are just 10 reasons why investing in a rental property right now is worth your time and money.
10 Reasons to Buy a Rental Property in Leicester:
- It’s a tangible investment
- It can be a money-spinner
- Market for renting
- Annual salary
- Guaranteed income
- Grow your portfolio
- A second home
- There’s lots of support
Support your family
Expand your knowledge
1. It’s a Tangible Investment
For some people, renting out a property provides an exciting opportunity to invest in the future. Unlike other investments such as stocks and shares, managing rental properties is readily accessible for many people who are unfamiliar with investment strategies.
2. It Can Be a Money-Spinner
House prices fluctuate, which can be unsettling for a potential buyer. But if you’re looking to invest in something safe and long-lasting, there’s no better bargain than a home purchase. The latest figures revealed UK landlords made an average profit of £79,770 in capital gains in 2018. The findings also revealed that most landlords (85%) sell their buy-to-let property for a higher price than the original purchased it for.
3. Market for Renting
From students to the newly relocated, from family members living together to couples moving in together, there is a good demand for rental homes in the UK. One of every five households is renting an apartment or house. With this in mind, you’ll almost always be able to fill your rental property when it’s time to find new tenants.
4. Annual Salary
One of the benefits of being a landlord is getting paid each year in return for owning and renting out your own property. The amount you get paid depends on the size, condition and location of your property will determine how much you get paid. However, there’s much appeal, with the average landlord earning £15,000 a year in rent, before tax and deductions. For some, this could make the difference of being able to go part-time in their job or retire early. For others, it is an excellent way to top up their salary.
5. Guaranteed Income
There are many challenges that come with owning a rental property. However, there are many benefits to being a landlord, and most will admit that these outweigh the few drawbacks. The stability of regular income is one of the many benefits that renting provides. Most rental contracts are for a year or more in length, providing landlords with security and trustworthiness when it comes to monthly payments.
6. Grow your Portfolio
Individuals interested in entering the real estate market can do so by starting with a buy-to-rent property. This gives them an introduction into the industry, and as they continue to invest, expands their portfolio for potential career opportunities.
7. A Second Home
There are many motivations for why people invest in buy-to-let properties, not just to make a profit. You may have heard of second homeowners who bought a property with the intent to rent it out; then when they retire, that property would become their primary residence where they will live full time.
8. There’s Lots of Support
Landlords should know they have plenty of opportunities for help in the buy-to-let market. The Residential Landlords Association, offering a variety of services from advice to consultation and support for members, is one such opportunity. Membership starts at £155 per year.
9. Support your Family
One advantage of owning property is the ability to rent it out to your family. Particularly if you have children who are in college, this will be an all-too-familiar scenario.
Many homeowners who have school-age children look to buy-to-let properties in order to guarantee a stable residence during their higher education, and often find that it can still be rented out even after they’ve moved out of the property.
10. Expand your Knowledge
If you’re currently looking to purchase and rent out a property, or plan on doing so in the future, there’s a lot you’ll have to know. From learning the lingo of buying and selling properties to understanding lending rates, landlord responsibilities and legal regulations – there are rich opportunities for personal growth aswell as business!