Some people believe in buying a house rather than renting a property.

Some people believe in buying a house rather than renting a property. Do you know that this is a great time to invest in rental properties as of their high demands and rising rental prices?

For several years, demand for rental properties is increasing more in the UK, particularly in popular areas with students and young professionals.

𝐀𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞𝐬 𝐨𝐟 𝐫𝐞𝐧𝐭𝐢𝐧𝐠 𝐚 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲

1. Occupancy can be as short as six months as the people can move after this time if it does not work for them.

2. The notice to vacate the place also gives the flexibility to move into a different property.

𝐃𝐢𝐬𝐚𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞𝐬 𝐨𝐟 𝐫𝐞𝐧𝐭𝐢𝐧𝐠 𝐚 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲

1. Unpredictable increase in the rent each time the lease is up for renewal.

2. One cannot do renovations or remodeling of the house without the approval of the landlord.

3. Repairs and maintenance can take longer than one would think.

4. One has to suddenly leave the property if the landlord decides to sell the property or turn it into an apartment complex.

𝐓𝐡𝐞𝐫𝐞 𝐚𝐫𝐞 𝐬𝐞𝐯𝐞𝐫𝐚𝐥 𝐫𝐞𝐚𝐬𝐨𝐧𝐬 𝐰𝐡𝐲 𝐨𝐧𝐞 𝐬𝐡𝐨𝐮𝐥𝐝 𝐜𝐨𝐧𝐬𝐢𝐝𝐞𝐫 𝐫𝐞𝐧𝐭𝐢𝐧𝐠 𝐢𝐧𝐬𝐭𝐞𝐚𝐝 𝐨𝐟 𝐛𝐮𝐲𝐢𝐧𝐠 𝐚 𝐡𝐨𝐮𝐬𝐞, 𝐢𝐧𝐜𝐥𝐮𝐝𝐢𝐧𝐠:

● Avoid some expenses such as repair, upkeep, and maintenance.

● Less home insurance expenses.

● No down payment or mortgage fee.

● No losses in terms of house prices (the value of a home can change anytime)

● Renting offers flexibility and predictable monthly expenses.

A first-time buyer will find it easier to rent a house than to buy one. It is because they do not have to stump up such a large deposit to rent.

Rent is also now cheaper than mortgage repayments on average because of rising property prices.

𝐈𝐬 𝐫𝐞𝐧𝐭𝐢𝐧𝐠 𝐚 𝐰𝐚𝐬𝐭𝐞 𝐨𝐟 𝐦𝐨𝐧𝐞𝐲?

People argue that renting is a waste of money because one can effectively pay the landlord a mortgage and give them a profit on top.

While it is true that you are not building equity in a property, renting does have its advantages because you must remember that your rent payments are giving you a roof over your head. It gives you more flexibility than owning a home with less maintenance cost.

Due to a raft of legislation in the last few years forgetting some adverse tax changes for landlords, one does wonder being a landlord is worth it. Due to Covid-19 and the massive government debt, commercial and residential landlords can expect further taxes for the property investment sector. It is time-efficient if your properties are close to where you live.

You need to consider if you have the time to deal with all aspects of the renting market before you think of becoming a landlord. Using a renting agent will reduce the time you require in managing the properties. The coronavirus pandemic also resulted in a shift in where we want to live. Alternatively, if you are building a portfolio of properties in the UK for investment purposes that can introduce you to mortgages from an expert buy to range on a personal basis, or you may wish to consider borrowing within a limited company structure incorporated in the UK. We have access to lenders that consider finance applications from British and non-British passport holders based overseas on either a personal or corporate basis.

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