- Mon 22 Jun 2015
As a result of the recently introduced pension reforms many will have the ability to release cash from their pension fund. Of course, there is no requirement to use this cash to re-invest and many are considering taking a well-deserved exotic holiday or buying a new car or something similar. However, as we are destined to live longer nowadays it would be foolhardy not to think of your future. This is where investing in a Buy to Let in a strong residential letting sector could provide a healthy income as well as good capital growth for your later retirement or for your family to inherit.
Taking a more cautious approach many would want to spend this new found cash and not want to tie it up in single investment. In these cases the banks and building societies appear to be coming to the rescue with more competitive Buy to Let mortgages, with rates usually reserved for those buying their primary homes. With so many options you want to be sure you are getting the best possible advice and guidance, for example an Independent Financial Adviser that has access to the whole mortgage market, or an estate agent licensed by the National Association of Estate Agents (NAEA) or the Association of Residential Lettings Agents (ARLA) to help you find the right property that has a sound rental income as well as providing good capital growth.
Recent statistics have suggested that, sadly, first time buyers are still not entering the property market in the numbers we would like and Buy to Let properties in almost all of the South West are in strong demand helping void periods to be kept to a minimum.
It is understandable, of course, that some will be nervous about entering the residential lettings market as a new landlord, particularly in light of some well-publicised and other not so well-publicised changes in legislation affecting landlords and the lettings industry. This need not be a concern with the correct choice of letting agent who can provide professional advice and a fully managed service that deals with all of your legal obligations, compliance with the law and help and advice throughout the tenancy. It is very important the choice of tenant is given the utmost attention to ensure risks are limited. Such tenants are the first time buyers currently trapped in the lettings market who still need to have the requisite income and exemplary credit worthiness to provide you, as the landlord, with a long-term stable income.
The cost of appointing an agent to take on all of this work for you is only a tiny proportion of the costs that can be incurred by making mistakes over the choice of property or tenant. Bradleys Estate Agents and Bradleys Financial Management would be delighted to be your first choice to guide you through to a sound investment. Please call 03330 146 140 (local call rate) if you would like to find out more.
Bradleys Commercial Director