Is it me or have landlords experienced a turbulent time of late?
Any press coverage the lettings market receives would put into question the sanity of any new landlord looking to buy an investment property at the moment.
But, principally this is a business that requires a longer term outlook rather than looking at it in the here and now. So what do the reviewers offer? A short term pessimistic view of being a landlord…nothing like playing to the narrative!
To counter that let’s look at purchasing a two bedroom house in Kenilworth for £250,000. You aim to receive a monthly income of £900 which results in total rent, over 5 years of £54,000. Also, factoring in conservative capital growth of lets say 2% per annum adds another £27,600 to your investment and all of a sudden you have a return on your investment of £81,600 over those five years. Does it now start to look interesting?
To quote Warren Buffett…be fearful when others are greedy. Be greedy when others are fearful. This for me sums up the place we are at in the Buy to Let market currently. Everything printed invokes fear of entry for new landlords, but history tells us these are exactly the times to enter. When you look at the possible returns why would you not look closer at investing in a second property?
So…hopefully I’ve now got your interest. Stay tuned and in the next blog we will explore the Kenilworth properties you should be considering buying.