Investing
in a Warrington buy to let property has become a
very different sport over the last few years.
In
the glory days of the five years after the turn of the Millennium, where we had
double-digit house price growth, mortgage companies (notably Northern Rock,
HBOS and their ilk) desperate to get on the buy to let mortgage bandwagon with
rates so low it would make the belly of a snake seem high and an open mildness
to give loans away with not so much more than a note from your Mum and with
hardly any regulatory intervention… anyone could make money from investing in
property – in fact it was easier to make money than fall off a log! Then we had
the unexpected flourish of the property market, with the post credit crunch
jump in the property market after 2010, when everything seemed rosy in the
garden.
Yet,
over the past five years, the thumbscrews on the buy to let market for British
(and de facto) Warrington investors have slowly turned with new barriers and
challenges for buy to let investors. With the change in taxation rules on
mortgage relief starting to bite plus a swathe of new rules and regulations for
landlords and mortgage companies, it cannot be denied some Warrington landlords
are leaving the buy to let sector, whilst others are putting a pause on their
portfolio expansion.
With
the London centric newspapers talking about a massive reduction in house prices
(mainly in Mayfair and Prime London – not little old Warrington) together with
the red-tape that Westminster just keeps adding to the burden of landlords’
profit, it’s no wonder it appears to be dome and gloom for Warrington landlords
… or is it?
One shouldn’t always believe what one reads in the
newspaper. It’s true, investing in the Warrington buy to let property market
has become a very different ballgame in the last five years thanks to all the
changes and a few are panicking and selling up.
Warrington landlords can no longer presume to buy a property,
sit on it and automatically make a profit
Warrington landlords need to see their buy to let investments in
these tremulous times in a different light. Before landlords kill their fatted calves (i.e. sell up) because values are, and pardon
the metaphor, not growing beyond expectation (i.e. fattening up), let’s not
forget that properties produce income in the form of rent and yield. The focus on Warrington buy to let property in these
times should be on maximising your rents and not being preoccupied with just house
price growth.
Rents
in Warrington’s private rental sector increased
by
4.38% in the past 12 months
Rents in Warrington since 2008 have not kept up with
inflation, it is cheaper today in REAL TERMS than it was 11 years ago and some
landlords are beginning to realise that fact with our help.
Looking at the last few years, it can be seen that there
is still a modest margin to increase rents to maximise your investment (and it
can be seen some Warrington landlords have already caught on), yet still
protect your tenants by keeping the rents below those ‘real spending power
terms’ of the 2008 levels.
Buy to let must be seen as a medium and long-term
investment ….
Rents in Warrington are 8.2% higher than they were 3 years ago and
property values are 16.22% higher than Jan 2016
…and for the long term, even with the barriers and
challenges that the Government is putting in your way – the future couldn’t be
brighter if you know what you are doing.
Investment is the key word here… In the old days, anything with a
front door and roof made money – yet now it doesn’t. Tenants will pay top
dollar for the right property but in the right condition. Do you know where the
hot spots are in Warrington, whether demand is greater for 2 beds in Warrington
or 3 beds? Whether town centre terraced houses offer better ROI than suburban
semis? With all the regulations many Warrington landlords are employing us to
guide them by not only managing their properties, taking on the worries of property
maintenance, the care of property and their tenants’ behaviour but also
advising them on the future of their portfolio. We can give you specialist
support (with ourselves or people we trust) on the future direction of the portfolio to meet
your investment needs (by judging your circumstances and need between capital
growth and yields), specialist finance and even put your property empire into a
limited company.
If you are reading this and you know someone who is a Warrington
buy to let landlord, do them a favour and share this article with them – it
could save them a lot of worry, heartache, money and time.
Email me on manoj@hamletwarrington.co.uk or call on 01925 235 338 – we are based on the Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.
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