28/01/2016 To Buy-to-Let or not to Buy-to Let?
Have you been thinking about investing in a rental property recently? Well now is the time to act! In his Autumn Statement Chancellor George Osborne announced that he will be raising the level of stamp duty on the purchase of second homes and Buy-To-Let properties by 3% from 1st April 2016. This now means that any property bought under these circumstances will no longer have a minimum value before stamp duty applies. Any home bought as a second home or BTL will now have a minimum 3% stamp duty bill attached.
It’s not all doom and gloom as there is still time to snatch up a rental property before the April deadline. Buying a house you wish to live in versus buying a house you wish to rent out can be very different so a different approach is required when making the decision to buy. When a person is looking to rent a property there are a few key factors that will influence their decision and mostly these decisions are made instantly and just on face value. Tenants do not have the ability to change aspect of the property the way a home owner would so rental properties need to be ready to move into with no work needed and to appeal to a broad spectrum of people.
The key thing to consider when looking to buy a BTL property is who you envisage the tenant will be. There are three main types of tenants that we deal with in this area all with different requirements. They are; Young Professionals, Families and Retirement Age.
Young Professionals are generally on the hunt for low cost, 1-2 bedroom, modern properties that are easily accessible for commutes to work in neighbouring towns and cities. Parking and energy efficiency are top priorities for these tenants.
Families tend to have a larger budget than the YP’s generally requiring 2-3 bedrooms with outdoor space for children and lots of storage. A garage is one of the most requested factors for this group as they are great for storage. Somewhere to park one or two cars and a bath as opposed to just a shower are also a must for many families. Safety will also be a big priority for families so look for secure, enclosed gardens, houses set back from the road and no steep staircases.
Retirement Age can have different requirements from tenant to tenant but generally speaking they will be more inclined to go for a property which has character, is close to town, plenty room for furniture that they have collected over the years and a spare room for guests and family to stay. The ability to park outside the property is a common request.
If you are thinking of becoming a landlord or purchasing an additional rental property then Monmouth Property Bureau are here to help with extensive experience in both Sales and Lettings. Call now on 01600 719183.