Welcome!

Mobile IoT Authors: Liz McMillan, Terry Ray, Elizabeth White, Pat Romanski, Kevin Benedict

Blog Feed Post

Why buy to let is a good investment

Five reasons why buy to let is a good investment – and our five top tips to help you get the most out of it

by .

Some landlords are ‘accidental landlords’ – people thrust into property letting by circumstances out of their control. But a great many chose to get into the business too, and hundreds of people are wondering whether or not they should follow suit.

For those people, here are five reasons why buy to let is a good investment – and five top tips to help you get the most out of it.

1. There’ll always be demand for rental property

If you look at the history of the private rental sector, you’ll see that the number of people privately renting has pretty much doubled in the last two-and-a-bit decades; now, around a fifth of people in the UK are renting, and the number is growing. Demand for quality rented accommodation is going nowhere in a hurry, and any businessperson will tell you that providing a highly sought-after service is a smart move.

Top tip: Pick your area. Just because demand is high doesn’t mean every area is a goldmine. Some areas are more desirable than others, many will have maximum rent limited by local factors like competition and employment, and others are so expensive that you’ll either have to buy massively below market value or attract the crème de la crème of opulent tenants to see any kind of profit. See our expert guide to the buy to let investment for more information.

2. It’s one of the best investment choices out there

We’re still in something of a recession, and when that happens, interest rates fall. This means landlords get better buy to let mortgage deals, yes, but it also means that savings aren’t working very hard. ‘Bricks and mortar’ is generally considered a solid investment, and in a sluggish economy, it’s even sounder.

Top tip: Do the maths. Of course, no investment is fool-proof, and you’ll want to get out your calculator if you want to make the most out of it. Making a good investment is about managing your exposure to risk, adding up your costs and calculating your profit. The more of this you can do in advance, the better.

3. You can invest for now or the future

Buy to let is a versatile investment; you can choose to invest for capital growth, income, or a mixture of the two. Recent reports suggest that more new landlords are looking for short-term gains, but many still see it as a viable way to reinforce or substitute their pension or their children’s inheritance.

Top tip: Have a game plan. It’s a good idea to know in advance what you’d like to gain from your investment so you can best plan your strategy. Check out our article Capital growth vs. income for more information on the types of investment you can make.

4. The buy to let market is in good shape

Rock-bottom interest rates mean that buy to let mortgages may well be cheaper now than at any time before. There’s also a lot of product choice in the market. Buy to let mortgages will often also be granted on the basis of the investment, rather than the borrower’s income, so if you’ve found the right property, securing finance for it will be easier.

Top tip: Shop around. The first deal you happen across probably won’t be the best, and what mortgage is right for you will very much depend on your circumstances and plans for your investment. This is where market experience is invaluable – for expert help finding the right buy to let mortgage, fill in our BTL quote form, and an adviser will call you back.

5. You’ll be part of a big step forward

Britain has, for the last century at least, been a nation that places a lot of importance on home-ownership. We’re approaching a time when all this might change, however. The role of the PRS in the UK housing market is shifting, and our current government is trying to shape it into a successful, forward-thinking industry. People who become landlords now may well be witnessing a massive change in UK housing, and can help make the change a positive one.

Top tip: Be a good landlord. Do your homework, know your responsibilities, know your tenants’ rights, and provide a good service. The rented sector is becoming more and more important in today’s society, which means the need for good landlords is huge; it also means the bad eggs that let the side down will be left behind.

It takes a lot of work to be a good landlord, but our Landlord Advice Centre is a good starting point – why not pay it a visit?

More Stories By TurnKey Landlords

Amelia Vargo is an online marketing executive for CT Capital. Amelia writes for Turnkey Mortgages, Turnkey Landlords, TurnKey Bridging, TurnKey Life and Commercial Trust.

IoT & Smart Cities Stories
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...