Buy-to-let: not just for Christmas

Buy-to-let can provide that beneficial long term investment - unlike shares which are up and down quicker than you can click your fingers. Part of the best asset class for the last five years, investors have long since realised the benefits of property over shares; and despite the negative press in 2006 buy-to-let is here to stay. The supposed forthcoming property market crash has put many people off buying property for themselves. It’s great news for investors though as individuals priced out of the property market are looking to let for longer.

The buy-to-let market is set to inflate as rental rates are continuing to increase – for many investors it is just a matter of choosing which kind of property to invest in. The increase in demand for rental properties means that, according to recent reports, buy-to-let is set to ‘prop up’ the property market. The influx of migrants and young workers unable to get on the property ladder are choosing to rent for the foreseeable future, as it is often more financially viable, and they have the added bonus of a landlord to take care of any repairs.

Maintenance can be the biggest concern for many landlords as older properties usually require more frequent attention. Buying off plan on the other hand can provide an excellent investment opportunity as new builds come complete with a structural guarantee for added assurance. Buying off plan is often perceived to be a risky business especially as a lot of localities are already over subscribed, however with strong research into up and coming areas, off plan property can alleviate the maintenance issues landlords want to avoid.

Remarkably – in the fickle property market - buy-to-let is a growth industry and can provide capital assets in the long term even if the day to day costs are not covered in the first instance. Unfortunately for those looking to make a quick buck, buy-to-let investment is not just for Christmas – investment commentators suggest a 10 year (minimum) venture from the outset. One thing is for sure; in this market it is important to do your research.