Is Buy to Let Still a Good Investment in Real Estate?

 

Investing in real estate is something that can be challenging, especially during uncertain times like we have all faced over the past year and a half. With stock markets collapsing and other challenges, is real estate still something worth investing in? 

Most of the people that invest in real estate, do so on a buy to let basis. They look for homes for sale, whether that is a luxury home that could be updated and sold on for a much higher price, or homes that can be updated and then rented out, as vacation homes or regular residential homes. There are still many people that choose to rent, for a variety of reasons, so the buy to let market when it comes to real estate investment still seems to be one that will always work, regardless of what else is going on in the economy. Here are some of the reasons why buying to let it is still a good investment, even in 2021 after the unprecedented times we have all lived through.

 

Low interest rates

 

When it comes to getting a buy to let mortgage, the interest rates are at a record low, with many less than 2%. As the banks have the property to fall back on, should payments not be made, they can lend out quite happily to investors, helping investors get a good return on their investment. Buy to let mortgages have had some restrictions in place in recent years, needing large deposits, so that is still something to consider.

 

 

Population growth

 

We keep hearing how we have an aging population, and that is still something that is true. Along with a growing population, there is more and more of a need for people to have somewhere to live. Regeneration of many cities also means more housing will be needed in specific areas, which is another reason why real estate can be a good thing to invest in.

 

Generation of renters

 

Although renting is something that is more common in Europe, there are many reasons why people rent, especially in student cities. When you rent, you are given some more flexibility whether that comes to moving around, which can be popular for young professionals. They don’t know where their careers, relationships, or family life will take them, and with renting, the contracts are short so they can get out of it quickly if required. There are also reduced fees for renters, which is appealing, as they won’t have to take into account legal fees or other taxes when buying a house, compared to renting.

If you like the sound of being a landlord and want to invest in property, then now could be the right time for you. Take into account location, as you’ll only be successful if you buy in areas where people want to live. Of course, you could consider commercial real estate as that is another sector that can be lucrative. Just bear in mind that you are likely to need a much higher amount of money upfront. 

 

(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)

Daily Wealth

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