Press Release Summary = When preparing to make an investment in a property and so enter the buy-to-let market, prospective landlords must give consideration to a number of important factors. A key issue will of course be the purchase price of the property and its potential to generate rental income. On top of this, the buyer must have some idea of what level of further investment they are prepared to make in the property.
Press Release Body = When preparing to make an investment in a property and so enter the buy-to-let market, prospective landlords must give consideration to a number of important factors. A key issue will of course be the purchase price of the property and its potential to generate rental income. On top of this, the buyer must have some idea of what level of further investment they are prepared to make in the property.
For instance, old Victorian-era houses are often bought up and converted into separate flats and bed-sits. This necessarily entails a great deal of plumbing and electrical work, plus there is often some structural work to be done as well. On the other hand, the investor may just wish to buy a house and rent it out entire, in which case there will usually be less work to be done. However, the age of the property wills till be an important factor, as will its overall structural integrity. Consideration must also be given to the fact that old properties may need to have their fittings updated and upgraded.
This is why the Home Builders Federation (HBF) - a trade body that represents private sector housebuilders - recently advised buy-to-let investors to look at buying a new build property. According to HBF spokesman John Slaughter, new builds are \"an attractive prospect\" for buy-to-let investors because they are fairly low-maintenance and \"built to modern building performance standards\".
Mr Slaughter acknowledged the fact that some people would probably consider new build properties to have less character than older buildings. However, he claimed that this is made up for by the fact that new builds can offer better advantages. Aside from being low-maintenance, they are usually more energy efficient than older homes, thanks to the modern materials used in their construction. \"If you\'re worried about things like energy efficiency, it\'s certainly going to be much better in a new build property than in an older one,\" he remarked.
The comments came as the Land Registry released figures showing that the average price of older flats has increased by 59 per cent over the last five years. In contrast, the average price of new-build flats rose by 15 per cent. The HBF claims that this makes new build properties a bargain investment at present, especially for the investor with an eye on the rental, not resale, market.
2022
