Mon 19 Jun 2017
Khalil: Is buy-to-let still a safe bet?
Buy-to-let has always been a popular choice as an investment. And it’s easy to see why. As a landlord you can secure a regular rental income, but you also own a property that should increase in value over time.
Yet, a landlord’s life has never been more caught up in red tape. At last count, the number of laws that affect rental properties was edging towards 150.
In addition the investment potential of buy-to-let seems to be at threat. Last year, changes to stamp duty offered a considerable blow to the finances of those considering investing in property. And changes to mortgage tax relief, fears about Brexit, and the promised introduction of a letting agent fee ban have left many reeling.
The cumulative effect of all this is that many now wonder if it’s still such a safe bet to become a landlord.
On the one hand…
Amid all the cries of doom and gloom there are many landlords who continue to quietly affirm that buy-to-let makes strong sense.
They point to the fact that mortgages are a lot cheaper than in previous years, and that the rental market is booming.
Despite increased costs, as a long-term investment, buy-to-let continues to outperform other options, especially with today’s low interest rates.
Yet do not expect an easy ride. Being a landlord is like going into business: you need to work at that investment. And it’s harder and harder work.
And on the other hand…
Stamp duty is what will hit the hardest. For second homes, you will need to pay it if the property’s value is over £125,000. The real sting in the tail is that it’s set at 3% higher than a normal house purchase.
The number of costs you need to factor into your feasibility study will include charges for preparing letting agreements and credit reference checks, all of which have been bounced back to the landlord.
And these costs won’t stop. You’ll need to put time and effort into maintenance and ensuring that you stay on the right side of the current legislation.
A helping hand
Whether you’re an existing landlord or a new landlord, there is a way you can protect your investment.
Having a letting agent manage your property greatly reduces all the work you have to put in. It also means that all the responsibility is not yours alone. You’ll be able to stay on the right side of legal requirements without so much as lifting a finger.
But the helping hand extends further than this. Khalil’s Rent Guarantee Scheme can guarantee your rent every single month, regardless of whether your property has tenants or not.
You simply lease your property to us for a few years and we pay you rent. We deal with pretty much everything else, from daily maintenance, checking references, handling rent arrears and more.
In fact, it’s never been easier to secure a return on your investment without all the hard work. And with barely any risk.
Is buy-to-let still a safe bet?
With risk reduced, stress minimised and work for you kept to a bare minimum all landlords actually need do is their sums before they make that purchase. That is a pretty safe bet.
Of course, no investment should be undertaken lightly. But, with Khalil’s Rent Guarantee Scheme, buy-to-let still looks very, very attractive. Which is great to hear amongst the cries of doom.