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Now is a prime time to invest in property, but novice buy-to-let investors should research the market more and follow the advice of industry experts in order to avoid getting their fingers burned, says a landlords’ association.
Many people starting out in buy to let are also unaware of changes in legislation that could seriously affect their investments.
Investing in property can offer high yields and capital growth for both novice and professional investors who are willing to put in the time and effort to see it through. As one of the most lucrative investment options, with annual yields of over 6%, there are many people who want to take their first steps into buy-to-let. However before plunging in, investors should follow the guidelines suggested by Chris Town, chairman of the Residential Landlord Association.
Chris explained: "A newcomer who does limited research into the buy-to-let market will be at a disadvantage. It’s a professional environment and fingers can get burned if the right homework isn’t done."
"Speak with industry professionals and, especially, investigate regulations that may affect your property. For example, Houses in Multiple Occupation (HMOs) are now subject to new and fairly stringent legislation and amenity standards, including complex licensing regulations, laid down in the new Housing Act. And this can even affect parents investing in student property for children to share with friends during their years at university."
"By far the best advice is to register with the Residential Landlords Association - whose members own over 100,000 properties in the UK private rented sector - and get the benefit of their legal and financial advice and professional support as well as essential training on how to avoid common problems of managing your investment properties and tenants."
The resurgence of buy to let activity has been particularly strong since prices started rising again towards the end of 2005. Across the country, investment in rental property has increased due to the high tenant demand for the right property in the right place. With demand currently exceeding supply, prices are pushing upwards and adding to the increased demand for rental properties for aspiring first time buyers who choose to rent until they can afford to buy.
Nick Clark, managing director of The Property Investor Show commented: "It is perhaps no surprise that investing in property is currently a popular option, as prices are rising once again and equity markets are proving a cause for concern."
"Both novice and professional investors who take the long term view on investing in property stand to make substantial returns, but those in it for a quick buck should thoroughly research the market and processes to ensure they don’t get their fingers burned."
"There are lots of options for the novice investor to get started in property investment, and speaking to experts like the National Landlords Association and the Residential Landlords Association at the Property Investor Show is an ideal opportunity to learn how to take the first steps. With a myriad of companies under one roof, from investment specialists and developers to trade associations and buy to let mortgage brokers, it really is the ideal opportunity for those interested in taking their first steps into buy to let."
The Property Investor Show will be hitting the ExCeL Centre in London’s Docklands from Friday 22 to Sunday 24 September, and will feature over 250 exhibitors specialising in all areas of property investment both in the UK and abroad. There will also be a comprehensive programme of expert-led seminars covering all aspects of buying, selling, financing and managing your property. Entry to the show is free of charge, with the majority of seminars costing £5 each.
Further details on the Property Investor Shows, and to register for FREE tickets, visit www.propertyinvestor.co.uk
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