Is becoming a property investor easier and more attractive post COVID?

Total Landlord Mortgages investigates the impact COVID-19 has had on the buy to let market and explains ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Is becoming a property investor easier and more attractive post COVID? | LandlordZONE.

Is becoming a property investor easier and more attractive post COVID?

investigates the impact COVID-19 has had on the buy to let market and explains why now, with restrictions easing and life returning somewhat to ‘normal’, is a good time to invest.

The COVID-19 pandemic may have hit the economy hard, but the buy to let market continues to boom. In 2021, more property investors than ever have formed companies to purchase buy to let homes and rents are primed to rise beyond expectations.

Companies House figures reveal that almost 42,000 companies were incorporated by landlords last year – a 23 per cent increase compared to 2019.

That takes the number of buy to let companies to a record total of 228,743, with almost half of these based in London and the South East.

Meanwhile, letting agent trade body, Association of Residential Letting Agents (ARLA) says 60 per cent of landlords increased their rent prices in March 2021. This is due to the fact that there are fewer properties available to rent but a growing number of tenants looking for a place to live.

So, with demand for rental properties outstripping supply and buy to let continuing to boom, is becoming a property investor easier and more attractive post-COVID?

As the nation emerges from lockdown and prepares for life after the pandemic, we asked Total Landlord Mortgages Principal, Daniel Lee, the frequently asked property investment questions.

Will buy to let mortgage interest rates rise?

Bank of England interest rates have stayed at a historic low of 0.1 per cent since March 2020 and are likely to stay at this rate for some time. The low interest rates were introduced during COVID-19 to encourage the economy to grow and are expected to remain as we come out of the impact of the coronavirus pandemic.

Will there be a property crash?

“This reminds me of a talk I went to around seven years ago with the leaders of the banking industry; one of them said that if there is an economic crash or the stock markets crash you will not see the Government stepping in to stimulate or prop up the economy.

However, if there is a chance the housing market will crash the Government will always make moves to strengthen and support this sector, which is exactly what happened in 2020 when the Stamp Duty Land Tax holiday was introduced for first-time buyers and movers.”

Daniel Lee, Total Landlord Mortgages

Has COVID-19 changed the rental market?

Bricks and mortar have never been more important. For the majority, the house you live in has also now become the place you work and socialise from.

Because of the lockdowns and social distancing restrictions enforced by COVID-19, more people are working remotely from home than ever before and space for a home office has become a priority to tenants.

The need for this extra space is something potential landlords are looking for in their new rental properties as they look to make them more attractive to  prospective tenants.

As well as office space, the pandemic has also made tenants appreciate outside areas and private gardens. Tenants are now increasingly looking for homes with a garden or outside area to relax and socialise in, whereas this may not have been a priority previously. A KFH study showed that 58 per cent of tenants say access to private outdoor space is paramount, and Ome’s rental market predictions highlights the shift out of cities to meet tenants’ increased requirement for outdoor space.

Are staycations attractive for holiday let investors?

Holiday home sales in the South West, Wales and the Lake District are booming as holidaymakers opt for UK breaks over international holidays due to COVID-19 travel restrictions, according to lender Hodge Bank.

Buyers are paying an average £401,000 for their holiday home, with the number of loan applications doubling in North Wales around the Lleyn Peninsula and Snowdonia.

Typically, the yield from a short term holiday home let is higher than that of a similar buy to let home, and the tax breaks are more attractive than those of other property investments.

For landlords looking for insurance to cover a holiday let, Hamilton Fraser Total Landlord Insurance offers a tailored UK home insurance policy as part of their landlord insurance offering, that provides comprehensive cover for holiday homes, whether they are for family use or let on short term rental agreements.

Are rents likely to continue to rise?

The latest official data from the Office for National Statistics shows that rents have increased on average 1.4 per cent year-on-year each month since January 2020 and a staggering 10.2 percent in the last six years (since 2015). Meanwhile, letting agents report that the supply of rental property has fallen for four months in a row, yet tenant demand is rising, which supports the reason for the increase in rent costs.

The Royal Institution of Chartered Surveyors (RICS) echoes this analysis, forecasting a three per cent rise in rents across the country excluding London, where they are expected to fall flat. This is likely to be because with more people working from home, the need to live in London has decreased.

The balance of supply and demand is tilting towards landlords and is likely to result in rents rising until the market adjusts again.

Are landlord mortgages easy to get?

Lenders still have an appetite for buy to let mortgages and the good news is that some are easing borrowing rules for landlords.

Total Landlord Mortgages can share some exciting news that helps borrowers who may have struggled to find a loan before. Find out more here.

Our lenders are now offering mortgages for individuals and companies that cover the following:

  • Buy to let with just 100 per cent rental multiples
  • Residential property, including ex-local authority homes; semi-commercial units; multi-unit freehold blocks (MUFB) and houses in multiple occupation (HMOs) above commercial premises
  • Second homes, including AirBnB rentals and holiday lets
  • First time landlords
  • Foreign nationals
  • Expats
  • Borrowers with poor credit histories
  • Loans for partnerships, trusts, limited companies and offshore companies

Total Landlord Mortgages can also help landlords transferring property from individual holdings to companies for zero consideration.

This should interest landlords looking to change their business status for tax purposes who are worried about the implications of stamp duty and capital gains tax when making the transfer.

Call Total Landlord Mortgages today on 033 224 8918 for advice and guidance to finding the right financial solution for you. Or alternatively .

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Is becoming a property investor easier and more attractive post COVID? | LandlordZONE.

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Downsizing Your Home? Don’t Make These 10 Mistakes

Before you start downsizing the family home, it’s important to understand that there are many potential missteps along the way. This guide will help you navigate those pitfalls so that you can make the most of your new, smaller lifestyle. The post Downsizing Your Home? Don’t Make These 10 Mistakes appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Downsizing Your Home? Don’t Make These 10 Mistakes

Whether you’ve decided to eliminate debt from your life, or you’re first time empty nesters ready for a new chapter, now may be the time to downsize your home. But before you start, it’s important to understand that there are many potential missteps along the way. This guide will help you navigate common mistakes so that you can make the most of your new, downsized lifestyle. 

1) Not setting goals before downsizing your home

While the financial benefits of moving into a smaller space can be plentiful, it’s important to set goals before you begin downsizing the family home. Here are the most popular reasons for downsizing your home:

  • Combating debt 
  • Turbo-charging your retirement fund 
  • Paying off your instantly
  • Saving money after retirement 
  • Reducing home upkeep and maintenance 

2) Ignoring hidden costs

Although you’ll be saving money on your mortgage and utilities by downsizing, that doesn’t mean you can throw financial caution to the wind. When you’re house shopping, make sure that the home you’re considering either doesn’t require extensive repairs or maintenance, or at least make sure that you can comfortably afford them. 

Also, ensure that your new home doesn’t come bundled with expensive property taxes and/or HOA fees that might eat into your savings. And if your downsize is taking you to more expensive markets, like or , be sure to factor in the potential increase in the cost of living as well.

3) Forgetting to budget for your move

As you begin to realize how much money you’ll save by downsizing your home, don’t forget about the costs associated with moving to a new location. While you may be thinking about cutting your costs by doing all the moving yourself, take a moment to consider hiring a moving company. Not only would you have someone to pack, move, and unpack your belongings, but most movers provide insurance, meaning that you’ll be reimbursed should anything break. 

4) Holding onto unneeded junk 

Good organization is key to any move but it will prove especially useful when you’re downsizing your home. So take some time to look through your garage, closets, and spare rooms for anything that’s collecting dust. That model rocket you bought at the space fair eight years ago might be awesome but do you really want to keep holding on to it? Start by rounding up these sorts of belongings and then work your way through old clothes, toys, old appliances, etc., and separate them into three piles: keep, maybe, and donate.

PRO TIP: Josh Cohen, Founder and CEO of The Junkluggers, knows that when downsizing it’s easy to overestimate the number of items that will fit in your new space. This can lead to double the work, starting before you move and then again after you’ve moved in. Start by sorting items into groups of what to pack versus what to donate and recycle. Spending some extra time up front will help you streamline your move, and you’ll also feel good about keeping items out of landfills. –

5) Not determining your lifestyle needs

After setting your goals, take some time to figure out what features you’d like to have in your new home. This is especially important when you’re as you’ll have less living space. If you’re downsizing your home because your kids have gone to college, then make sure that your new home will permit the lifestyle you want and that whatever belongings you’re taking with you will fit.

6) Paying for rooms you won’t use

When you stop to think about which rooms you use the most in your home, it’s probably pretty simple: the living room, kitchen, a bedroom, and a bathroom. If you’re not using your dining room, den, and third or fourth bedroom, why even have them at all? By thinking about what rooms you currently do and do not use, you can simplify your search for a downsized home. The same tactic can be applied to your yard. If you find yourself spending little of your free time enjoying your yard — rather just maintaining it — then consider looking for a new home either with a smaller yard or without one. 

Apartment Living Room and Kitchen

7) Trying to take all of your furniture with you

While your two-story home is more than capable of housing all of your furniture, your new home won’t prove quite so spacious. So before you start loading your beds or sectional sofas onto a moving truck, keep the limitations of your new home in mind. Also, furniture that is too large for a room will only make a room look smaller, so you may want to consider getting a new couch that will truly work in your new space.

8) Skimping on storage

In addition to saving important documents that you don’t require frequent access to, a storage unit is a great option for saving sentimental items like scrapbooks or seasonal items like winter coats. Whether you’re downsizing temporarily or for the long haul, renting a storage unit is a great option for those items that you don’t have space for but just can’t bring yourself to get rid of. 

9) Forgetting to create a downsizing schedule

Moving is a ton of work, even before you add downsizing your home to the mix. Avoid getting too stressed out by the process by remembering to take it one step at a time. Set a timeline for yourself and create a moving schedule accordingly, rather than attempting to tackle everything all at once. By creating a downsizing schedule and a , you’ll stay better organized throughout this process while also reducing stress.

10) Choosing the wrong type of home 

When you’ve made up your mind to begin downsizing your home, you’ll then need to consider what you want to move into. The type of home you decide on will depend on factors like your finances, health requirements, and the type of lifestyle you’re seeking. Some houses you can consider include single-story, condos, or apartments. 

The post Downsizing Your Home? Don’t Make These 10 Mistakes appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

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