With a raft of new legislation hitting the private rental sector over the last few years, you’d be forgiven for thinking that the golden age of buy-to-let is well and truly over. But property is still the best investment you can make in 2017, insists Just Landlords.
5 Star rated Landlord Insurance provider Just Landlords believes that property is still worth investing in this year, despite tax changes, stricter lending criteria and yet more regulations governing the private rental sector.
So why should you invest in property in 2017? Here are just a few reasons:
Record low interest rates
While record low interest rates are bad news for those making cash savings and ISAs, they are good news for investors using mortgages to purchase their properties. It couldn’t be a better time to secure one of the great deals available at the moment, meaning property well and truly trumps savings.
House prices continue to rise
Although house price growth is not hitting the heights that it has done in recent years, average property values continue to rise across the country. With high demand and low levels of housing stock available, house prices only look set to go one way in the future – and that’s up. With values still climbing, you’ll be likely to see strong capital gains.
Rents increasing faster than inflation
At the same time, rent prices are rising faster than inflation in many parts of the country. This is great news for your pocket, as it means that you’ll be able to charge higher monthly rates on your property and will receive significant rental returns as a result. Just be sure to make your prices competitive to prevent tenant rent arrears, warns Just Landlords.
More mortgages than ever
There are now more buy-to-let mortgage products available than ever before, which, coupled with the lowest rates on record, means that you’ll have a wide range of new, competitive deals to choose from. Remember to seek professional financial advice to make sure you’re opting into the right rate for you.
The market favours professional investors
While amateur and accidental landlords have thrived in the private rental sector in the last few years, the market now favours professional investors. Due to overhauls of mortgages, taxes and legislation, it’s more important than ever to have a solid strategy and strong business plan, which will help you succeed in a more sophisticated sector.
A great cash flow generator
Property remains a great cash flow generator for investors. While you will have regular expenses going out, such as mortgage repayments and maintenance costs, you will also have weekly or monthly rent payments coming in from your tenants, which should keep your finances balanced and strong.
If you’re looking at different investment options for 2017, you shouldn’t cast property aside based on the changes that have hit the sector recently. Just look at the reasons above – property is still the best investment you can make.