Is Now A Good Time To Get Into Property Investment?
The last 3 months have provided increasingly positive results for the buy to let industry, with 12% of property investors planning to invest in more property; a further 24% revealing that tenancy demands for rental properties have risen and rent arrears have fallen by 10%.
Analysing these statistics there is no denying that property investment is back in vogue. Yet the question still remains: is now the right time to get into buy to let?
Property advisors seem to think so…
Tenant demands are on the up
- 64% of property investors may be reporting steady demands for property rentals; however research by LSL Property Services has found that 24% of landlords are witnessing increased demands
- For the second consecutive quarter in a row tenant arrears have fallen bringing them down by a total of 10% – its lowest since 2008
- 33% of landlords have got high hopes for the property market during the next 12 months having indicated that they believe tenancy demands will rise
Value of property portfolios have increased
According to research by Paragon Mortgages, the average property portfolio value has risen by 6.1% in the last quarter to £1.52m.
Speaking to property investors on this issue, 73% felt that the value of their portfolios would remain stable over the next year whilst 19% believed it would increase.
On the other end of the scale, rental yields have remained increasingly stable too despite recent fluctuations in property prices. Instead they have remained steady swaying on average of 6% and 6.2%.
The good news gets better…
Property investors prepared to take a risk in property investment have now got a long list of long-term benefits to look forward to. Continuing in their study, Paragon Mortgages noted:
- An increased drop between the proportion of property owners in owner-occupation to those opting to rent
- There are now more single person households, economic migrants and students who are using buy to let as their long term living solution
- More and more property owners are getting married and having children later in life
- The governments growing failure to provide new property developments has prompted homeowner’s to switch their focus away from home ownership to the rental properties
Related posts:
- Is Now The Time To Expand Your Portfolio?
- Buy To Let Investment To Boom?
- Private Rental Sector Faces Severe Housing Shortage
- Home Reports Change Scottish Property Investment Forever
- Property Investment Company Re-enter Property Market
Tags: buy to let, property advisors, property development, property investment, property investors, property portfolio
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