Brighton has been recognised as a buy to let hotspot – This might not come as a surprise to those living in one of the thousands of rental properties in the City. But what might be a surprise is that Yorkshire and Oxfordshire (who also featured on the list) deliver an average higher rate of 6.3% yield, against the 5.6% from Brighton!
Brighton as a seaside town has done very well for itself in terms of property prices, compared with areas such as Blackpool and even Bournemouth; Brighton has secured itself as the only seaside town on this list! Neighbours Guildford and Canterbury also feature along with several areas in London (no surprise there).
So, now that you know Brighton is a hotspot for Buy to Let, should this mean that you hop to the nearest estate agent and start the ball rolling?
Brighton is the hotspot, but look into surrounding areas too. Chances are that if Brighton is developing at this rate there will be a greater demand for housing in the surrounding areas too. If Brighton property prices are a little high, you could make a saving by finding a property in one of the surrounding areas. Research the rental market in the surrounding areas and you may find it’s only fractionally cheaper for rent, compared to purchase price which may be dramatically lower.
Be aware of rising mortgage rates. 2008 saw the Bank of England slash interest rates to 0.5% and they’ve remained there ever since. They will rise again so ensuring your investment can withstand rising interest rates is a must.
As a buy to let investor you potentially have more power to haggle over the property price. Not being reliant on selling another property to purchase your investment means you’re not forming part of a chain. You can make stronger offers on this basis.
Double your chances of significant ROI (Return on Investment). If you find a property that needs work before you can place it up for rent there’s scope to make money on the rental income and the resale of the property. While your initial costs will be higher to purchase materials and labour to improve the property, you can start seeing a greater return on your investment with the rental income almost immediately, but also the overall property value will rise. Be aware that the property does need to be deemed as rentable in its current condition by the lenders surveyor.
Think about your target tenant and buy for them.
For example –If young professionals consider proximity to rail stations, good road links and accessibility to the town centre. If families, consider school catchment areas, property size, bathroom & kitchens are important as well as the neighbourhood.
Number One Mortgages are home buying and buy to let experts. They can assist you with the process of securing a mortgage that gives you the best deal for your individual situation. We’re also on hand to offer helpful advice on the maths of understanding and predicting your return on investment. We pride ourselves on working with our clients through every step of becoming a landlord. Discover more about our Buy To Let Service.
If you’d like more information about Brighton buy to let, or you’re looking for expert advice contact the team at Number One Mortgages today on 01273 736536 or request a call back.
Ref Source – The Telegraph